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Yen snaps a five-day slide after Tokyo and Washington talk 160
USD/JPY poked above 159 after the BoJ hike was called too soft. On 25 September Finance Minister Katayama said Trump flagged yen weakness to PM Takaichi, then affirmed cooperation with Treasury Secretary Bessent. The yen snapped five down days. 160 is now a political level.
7 min read · 25 September 2026
The slide into the warning
From 22 September the yen kept selling even after last week’s hike to 1.25%, a 31-year high. Two dissenters and guidance that did not match the Fed left the differential wide. USD/JPY worked 157.4 → 158.3 → 158.9 and tagged above 159 for the first time since 2 September. Crosses followed. Carry was back in the room until the politicians spoke.
What Tokyo said on Friday
Katayama told markets that President Trump raised yen weakness with Prime Minister Sanae Takaichi earlier in the week. She then held a call with US Treasury Secretary Scott Bessent. The ministry said both sides remain concerned about an undervalued yen and intend to strengthen cooperation — the same stance behind July’s joint intervention language. USD/JPY dropped more than 1% toward 157.1, the first up day for the yen in six sessions and the largest daily gain versus the dollar since 7 September.
What the desk watches next
Verbal first, then checks, then official buying. 160 is where risk/reward for short-term shorts of yen changes. A holiday-thin book still gaps. Do not treat 157 as a new floor just because Friday rallied — the rate gap versus the Fed has not closed. Watch MoF language, not a single candle.
Risk note
Intervention is a regime shift. Spreads widen and stops get run in the minute it arrives. Size from invalidation. This is market colour — not a call to fade USD/JPY or to chase the bounce.
These notes are education, not a recommendation to trade, and not a solicitation. Leveraged FX can return a total loss of capital, quickly. Nothing here is personal advice. SummitFx does not hold client funds. Read the risk disclosure.