Masahiko Loo: The likelihood of a joint intervention by the US and Japan has reached a critical level

At the beginning of the year, financial market experts are becoming increasingly attentive to the possibility of coordinated intervention by the world’s leading economies in currency exchange rates. State Street Global Advisors analyst Masahiko Loo expressed concern about the rising risk of joint action by Washington and Tokyo in the currency markets, especially in the context of Japanese yen instability.

Financial signals as precursors to political actions

According to Loo, the release of this week’s interest rate review report carries significant symbolic meaning. Historically, such reviews conducted by the Treasury have often preceded specific currency intervention measures. The expert emphasized that these signals should not be ignored—they often serve as “green flags” before more serious actions.

Spiral of speculation and yen weakening

If authorities delay new measures, Loo warns, a wave of speculative pressure could erupt in the market. The market constantly “tests” central banks’ readiness to act, and each delay only provokes more aggressive behavior from traders. This creates a vicious cycle, where a lack of resolve leads to further weakening of the Japanese currency.

Level 162: a critical point for intervention

Regardless of when the intervention occurs, the analyst points to a clear market benchmark. The level of 162 yen per dollar is the figure at which the last direct intervention took place. For traders and analysts, this level serves as a key technical indicator and confirmation that authorities are prepared to act once this mark is reached.

Loo’s position reflects the growing confidence of the expert community: a joint intervention by the US and Japan is no longer a hypothesis but a matter of time.