Takashi Sanae makes a strong statement, Japanese yen short sellers face "squeeze out".

date
25/01/2026
Due to the action warning issued by Japanese Prime Minister Sanae Takichi on the abnormal fluctuations in exchange rates, traders will be on high alert at the beginning of this week, rigorously guarding against Japanese government intervention to prevent the recent decline of the yen - this action may even receive rare assistance from the United States. Michael Brown, senior research strategist at Pepperstone group, stated, "Exchange rate checks are typically the final warning before intervention. The tolerance of the Takichi government towards forex speculation seems much lower than that of its predecessor." Reports of exchange rate checks may deter the market from further shorting the yen, squeezing the yen bearish positions to the largest increase in over a decade. In the final few trading hours last week, the yen's trend violently reversed from a downward trend towards the lowest level since 2024, with a sharp rise against the dollar by 1.75% to 155.63, marking the largest single-day increase since August of last year. Nick, chief analyst at AT Global Markets, pointed out that if the United States is involved in potential exchange rate checks, its impact will not only be limited to the yen, but may also affect global markets.