Japan's "PCE Day" Intervention Strategy Take a close look at the daily chart of USDJPY.
The massive red candles on April 30 and July 30 highlights a clear, tactical correlation.
The Action: Sharp Japanese Yen-buying interventions to suppress a runaway USDJPY exchange rate.
The Funding: Tokyo funding the operation by bulk-purchasing JPY and dumping U.S. Treasuries.
The Timing: Both instances landed exactly on days when the U.S. Bureau of Economic Analysis (BEA) dropped its PCE inflation data.
The Bottom Line:
It could not be just a coincidence. Japanese authorities seem to actively weaponize the heavy trading volume and volatility that occurs during U.S. PCE releases to hide or compound their market intervention footprint.
Keep a very close eye on the calendar for upcoming U.S. inflation data drops—they have officially become prime territory for major Yen reversals.
