The yen is approaching 150 yen to the dollar, a level that prompted the Japanese government to step in to support the currency a year ago, but some analysts say it may not be ready to intervene again.
The dollar was trading at about 149 yen Wednesday in Tokyo, after falling as low as 149.18 yen Tuesday, its lowest level since October 2022, the month the Japanese government last intervened to buy yen.
Some analysts say the bar for intervention is higher than market participants think, as it would most likely require understanding from the U.S. government.
Japanese officials generally say they are not targeting any particular currency level, but rather want to prevent wild market moves. For now, the yen's daily declines have been small and not dramatic.
'When the yen is falling as slowly as it is now, it's hard to find a reason to intervene,' said Takahide Kiuchi, an economist at Nomura Research Institute and a former member of the Bank of Japan's policy board. As a result, he said, the yen could fall below 150 yen to the dollar.