US and Japan tag-team to defend the yen — long the yen at the 155 line
The US and Japan are teaming up to support the Japanese yen, and a key part of that effort involves coordinating in the bond market. Experts are watching the 155 yen level as the line in the sand for this intervention.
Idea
When central banks coordinate to defend a currency, it creates a strong, temporary floor in the exchange rate. The strategist highlights 155 yen as the key level to watch, suggesting intervention is likely to trigger aggressively near that zone. By positioning for a bounce as the dollar approaches that line, traders can front-run the official support. The downside is tightly capped because if the level breaks, it signals the intervention failed and you want to be out immediately. ## Story development — 2026-08-03 09:38 UTC **US Treasury is running low on ammo to defend the yen — fade the intervention spike** The US and Japan are working together to artificially prop up the yen, but JPMorgan warns that the US Treasury is running low on the cash needed to sustain this defense. This coordinated effort might only provide a temporary floor, making it a classic fade-the-spike opportunity once their ammunition runs out.