The USD/JPY pair plummeted from near 152.00 highs in late Wednesday trading as expectations of intervention by Japanese authorities escalate. The sudden decline follows reports of an upcoming tri-party meeting between the Bank of Japan, the Ministry of Finance (MoF), and the Financial Services Agency (FSA).

This meeting amplifies market hopes for “stealth interventions” to counter further Japanese Yen depreciation. Top currency diplomat Masato Kanda further fueled intervention speculation by stating he wouldn’t “rule out any steps” to address excessive currency fluctuations.

Despite the BoJ’s recent exit from negative interest rates, the Yen has weakened significantly, suggesting investors remain unconvinced of rapid policy normalization due to limited signs of a wage growth spiral. This leads to expectations that further normalization moves by the BoJ will be measured.

Looking ahead, the US Dollar is poised for gains pending the release of February’s core Personal Consumption Expenditure (PCE) Price Index data on Good Friday. With US markets closed, trading volumes may be muted. Annual core PCE inflation is expected to hold steady at 2.8%, with monthly growth softening slightly to 0.3%. The US Dollar Index (DXY) remains below the monthly high of 104.50.