"Bank of Japan's USD/JPY Intervention: 500 Point Drop Expected"

The Bank of Japan (BOJ) may intervene in the USD/JPY exchange rate if the yen weakens further, with past interventions resulting in an initial 500-point drop. The Ministry of Finance (MOF) is responsible for formulating foreign exchange policy and instructs the BOJ to execute interventions. The BOJ conducts operations by buying yen using USD reserves. The MOF and BOJ collaborate closely, with the MOF making the ultimate decision on intervention based on advice from the BOJ. The current JPY weakness is impacting the popularity of Kishida in the polls, potentially prompting the government to announce new economic measures.