USD/JPY Under Scrutiny as BoJ Confirms Record JPY 11.7 Trillion Intervention

USD/JPY faces renewed downside risk after official data from Japan's Ministry of Finance confirmed that the Bank of Japan executed JPY 11.735 trillion in FX intervention between April 28 and May 27, representing the largest quarterly intervention operation since 2004. This unprecedented scale of yen purchasing highlights the severity with which Japanese authorities view the currency's depreciation and their willingness to act decisively. The intervention figures exceeded many market estimates, suggesting the BoJ was actively defending multiple levels during the period. The sheer volume of intervention is likely to anchor USD/JPY below recent highs as market participants factor in the credible threat of further official action. From a technical perspective, the pair's upside appears capped near the levels where intervention was triggered, with support likely building around post-intervention lows. Traders should exercise caution with long USD/JPY positions, as the confirmed scale of operations raises the probability of additional intervention if the pair approaches previous highs.