Yen rallies 2.5% after $105B intervention to stabilize Japan's market, crucial for global and AI sectors.

Japan's yen has rallied 2.5% since August following coordinated interventions led by US Treasury Secretary Scott Bessent and the Bank of Japan, deploying up to $105 billion with potential support reaching $200 billion. This stabilization effort is vital for global markets and the AI sector, though some traders remain skeptical. Japan's Ministry of Finance has multiple tools to manage the situation, including the Fed’s FIMA Repo, reducing the risk of large US Treasury sales. Market volatility is expected around upcoming policy decisions, but the analyst remains bullish on the S&P 500, viewing September as a buy-the-dip opportunity.