With the yen repeatedly declining to fresh historic lows against the U.S. dollar, speculation has been rife that Japanese financial authorities could intervene in the currency market at any time.

For the past month, top financial officials have been sending warnings and have hinted that they would be ready to step in. But there seem to have been no signs of an intervention so far, even though the yen has already far exceeded the level that prompted the government to take action in October 2022.

This has raised questions as to why Japanese authorities haven’t yet made a move.