Japan has moved to save the yen again, and Bitcoin traders may pay the price
Japan reportedly stepped into the currency market with roughly $35 billion of yen buying, sending the dollar down nearly 3% to 155.5. Bank of Japan (BOJ) money-market data imply that size is accurate. Once the Ministry of Finances monthly release confirms it, this would rank as Japans first official yen-support action in almost two years and the second-largest on record. The BOJs own April outlook projects CPI excluding fresh food at 2.5% to 3.0% in fiscal 2026, and economists expect inflation to re-accelerate as oil and yen weakness amplify import costs. The numbers show that 95% of Japans crude oil flows through the Strait of Hormuz, and the BOJs baseline scenario assumes Dubai crude will trend toward $70-$80, with no major supply disruption. Tokyos political tolerance for importing inflation while the yen slides has limits, and those limits were broken this week. USD/JPY peaked at 160.7 on April 29 before Japans reported $35 billion intervention drove the pair down to 155.5. The BOJ held its policy rate at 0.75% on Apr. 28, with three board members dissenting and arguing for a 1% rate. The Fed also held its policy rate at 3.50%-3.75% on Apr. 29. That short-rate reality of roughly 275 to 300 basis points is the