The yen is weakening, approaching the level at which authorities previously intervened: the USD/JPY exchange rate is currently fluctuating around 160, a level that has triggered government intervention multiple times in 2024. At that time, Japan spent trillions of yen to defend its currency, including one instance where it spent 5.92 trillion yen and another where it spent 5.62 trillion yen. Japan's top currency official, Masato Kanda, warned on Monday that the government "will take all possible measures at any time," indicating that the government is prepared to act "in every way." With over 90% of Japan's oil imports relying on the Middle East, gasoline prices have reached a historic high of 190.8 yen per liter, forcing the government to reinstate fuel subsidies. If the yen falls below 160, the likelihood of market intervention will sharply increase.