The yen jumped from near 165 per dollar—a four-decade low—to the 155 range in just a few sessions following intervention.

This move does not address the underlying issue.

Intervention affects the price, not the interest rate differential that is driving the currency down.

As long as Japan maintains interest rates far below the rest of the world, the pressure will return.

The real risk lies in the consequences of this volatility.

A rapidly appreciating yen is a classic trigger for the unwinding of carry trades, and such moves have already roiled global markets in 2024.