Bank of Japan (BOJ) conducts an emergency market operation on Wednesday, in a desperate attempt to restrict the yields from piercing the 0.25% target.

The Japanese central bank made offers to buy JPY100 billion in 10–25-year Japanese government bonds (JGBs).

Market reaction

The free fall in USD/JPY stalled on the above announcement, prompting the pair to rebound towards 122.00, having hit day’s lows at 121.32.

The spot is currently trading at 121.62, down 0.99% on the day.

Read: BoJ will offer to buy 600B yen in 3-5 yr JGBs and 725B yen in 5-10 yr JGBs