Why are the Japanese government and central bank intervening in the forex market for the second consecutive day? According to Nikkei News, on the 31st in the New York forex market, the Japanese yen strengthened rapidly against the US dollar, briefly rising to around 157 yen per dollar. Following their intervention on the 30th, the Japanese government and the Bank of Japan carried out another round of yen-buying intervention for the second day in a row. Here’s my analysis and summary of the core logic behind Japan’s forex intervention: 1. Trigger: The yen fell below 1:163, nearing a 40-year low, hitting the official bottom line. 2. Scale of intervention: Estimated at around $52.8 billion in a single day, setting a record high. 3. Immediate goal: To warn market speculators, "Don’t excessively short the yen." 4. Deeper purpose: To curb the soaring costs of energy imports and alleviate the pressure of imported inflation on livelihoods and businesses; to buy time and align with the Federal Reserve’s policy shift for subsequent monetary policy adjustments. 5. Core effect: Short-term success, with the yen surging by about 5 yen instantly, but it’s a temporary fix that doesn’t address the fundamental issue of the massive interest rate gap between Japan and the US. Final judgment: This is a high-cost “time-for-space” tactic, not a strategic turning point. What do you think? Is Japan’s intervention in the forex market a success or just drinking poison to quench thirst?