EPA:RMS.PA News 18 January 2026

January 25, 2026, 10:39 AM EST. The yen's recent sharp decline has sparked heightened market caution over possible intervention by the Japanese government, backed by rare U.S. involvement, following Prime Minister Sanae Takaichi's warning against abnormal currency moves. Reports that the Federal Reserve Bank of New York conducted yen exchange rate checks, usually a precursor to intervention, further fueled speculation. The yen reversed course with its biggest daily gain since August, strengthening more than 1.7% against the dollar. Traders are wary of pushing the yen lower amid historically increased short positions. Officials have also expressed concern about bond yield surges. Market analysts warn of significant impacts if coordinated action from Japan and the U.S. materializes, recalling past joint moves such as the Plaza Accord.