According to a report by Masahiko Loo, Senior Fixed Income Strategist at State Street Global Advisors, the scale of Japan's intervention in the foreign exchange market on Thursday is estimated to be around 5 trillion yen ($31.1 billion). The key signal from the overnight action is that Japan's Ministry of Finance remains uneasy about the excessive weakness of the yen. Rather than a specific level, this line should be understood as a zone near 162-165. Loo indicated that the Bank of Japan may announce a hold today but will likely adopt a hawkish tone; the September and October meetings are seen as opportunities for the next rate hike, deviating from the typical six-month interval. Comments from Bessent and the New York Federal Reserve's foreign exchange inquiries have effectively given Japanese authorities more reason to address the yen's excessive weakness. "If the dollar/yen experiences another disorderly move, the Ministry of Finance will not hesitate to intervene," he added.

The estimate places the intervention size at roughly 5 trillion yen, signaling Japan's readiness to act against further depreciation. Loo's analysis suggests that while the Bank of Japan may maintain current policy today, its forward guidance will likely emphasize vigilance against yen weakness. The strategist noted that the combination of U.S. policy signals and market conditions has strengthened Japan's resolve to curb speculative moves, particularly if the yen breaks beyond the 162-165 range.