Industrial foreign exchange today's news, the dollar/yen broke through 150, the Japanese government may intervene in the foreign exchange market again

A former top Japanese foreign exchange official said on Thursday that the Japanese government may intervene again if the dollar/yen breaks through 150foreign exchange marketDue to his influence on the yen in the past, Sakakihara is known as "Mr. Yen"

Eisuke Sakakibara, a former top Japanese foreign exchange official, said on Thursday (September 28) that the Japanese government may intervene in the foreign exchange market again if the dollar/yen breaks through 150.

"Regardless of what others say, this level is quite important. So if the dollar/yen rises above 150, it could lead to some kind of intervention," said Sakahara.

Due to its influence on the yen in the past, Sakahara was known as "Mr. Yen".

USD/JPY was trading around 149.40 in European trading on Thursday, with traders on alert for any sign of intervention from Japanese authorities as the pair approached a key psychological level of 150.

Sakahara also said that if the dollar/yen hits 155, Japanese officials may be concerned about it.

"I can't specify a number, it depends on the situation at the time, but if it reaches a level like 155, Japanese government officials will start to worry," Sakahara said.

Mr. Sakahara oversaw more than a dozen interventions from 1997 to 1999, when he was deputy finance minister for international affairs.

Sakahara's main argument is that Japan will try to ride out yen weakness without intervention while waiting for the Fed to change course.

The dollar strengthened on expectations that U.S. interest rates would remain high for an extended period, while the yen continued to weaken.

But market participants have been cautious about testing how far they can push the dollar/yen higher, with finance ministry officials repeatedly warning that no options would be ruled out if the yen depreciated too quickly.

Japan spent more than $60 billion on three interventions last year before the USD/JPY hit 146 and 152.

Sakakihara, now director of the Institute for Indian Economic Studies, said that if the government had to intervene in the market again, it might have to invest similar or more funds.

Mr. Sakahara claimed that verbal warnings would be more effective once they stepped in, adding that without action, the yen could approach the Y160-to-the-dollar mark, but not exceed it.

However, he predicted that the situation could reverse, possibly after the Federal Reserve's December meeting, and that Japan could also raise interest rates next year.

"US monetary policy is likely to change in the near future. So if that happens, the yen will start moving towards 130.