After three consecutive days of yen-buying intervention, the USD/JPY fell to the low-150s for a time.

【8/3Market Overview

In Tokyo time, the dollar/yen rose as high as157.88yen on buying back after yesterday's decline, but after suspected flow from Japanese authorities to buy yen appeared, it fell to a low of155.21yen. Thereafter, it was bought back to the mid-156s. Finance Minister Suzuki (Katsuyuki) Katayama revealed that on7/31it coordinated with the U.S. Treasury to intervene to buy yen. Also, U.S. Secretary of the Treasury Janet Yellen said she would “participate in future coordinated interventions without hesitation.” In European time, the dollar/yen initially rose on a rebound to157.13yen, but gains were limited due to caution over coordinated intervention by Japanese and U.S. authorities.NYtime,7月ISMmanufacturing index came in at55.6versus the forecast of53.9, and with the expected currency intervention not seen, yen selling gradually dominated, and near the close the dollar/yen rose to157.22yen.

【8/4Market Outlook