Tokyo’s yen-buying intervention on April 21, 2025, followed USD/JPY’s move above 160 and pushed the currency from around 160.20 to roughly 154.40 within hours. The Japanese Ministry of Finance said it was the first such intervention since October 2022, and the operation occurred in two rounds. By the end of the following week, USD/JPY had returned to a 154-to-157 range, indicating that the action established near-term support rather than reversing the yen’s broader decline. The main drivers remain the interest-rate gap between the United States and Japan, with 10-year US Treasury yields around 4.5% versus Japan’s 0.9% in late April 2025, alongside Japan’s trade deficit and imports of energy and raw materials. The Bank of Japan has retained an ultra-loose monetary policy despite adjustments to its yield curve control program, while the Federal Reserve has kept rates high to fight inflation. The intervention triggered a short squeeze after leveraged funds held multi-year-high net short yen positions, according to the Commodity Futures Trading Commission (CFTC), the U.S. derivatives regulator, but traders soon rebuilt short positions. Analysts say the yen may remain range-bound, with support near 154 and resistance around 157, while renewed weakness beyond 160 could prompt another intervention. A lasting trend change would likely require a shift in Bank of Japan policy or global risk appetite.