Investors are concerned that Japan may intervene in open markets to protect the currency’s value after a sharp drop in the yen. [FRX/]

Japan has not intervened in direct foreign exchange markets for more than 10 years and its intervention to support its currency is over 20 decades.

The Bank of Japan has provided a chronology of certain moves made in FX markets.

Japan’s history of yen interventions: https://fingfx.thomsonreuters.com/gfx/mkt/xmpjoykbovr/Pasted%20image%201650518854154.png

1973 – The Japanese monetary authority decides to allow the yen free movement against the greenback.

1985 – The Plaza Accord is signed by the Group of Five industrial countries (precursor to the G7). They agree to lower the dollar and acknowledge that it has become too expensive.

1987 – In February of 1987, six G7 nations signed the Louvre Accord. It aims at stabilizing currencies and halting the broad decline in the dollar.

1988 – The dollar drops to 120.45 Japanese yen in Tokyo Trade on Jan. 4. Bank of Japan intervenes, buying dollars and selling yen.

1991-92 – Bank of Japan intervenes in support of the yen by selling U.S. Dollars

1993 – Bank of Japan purchases yen throughout the year in an effort to reduce its strength.

Between April 1994 and August 1995, the Dollar fell to an all-time low against both the German mark (and the Japanese yen) of a record. In order to support the greenback repeatedly, the United States has intervened with Japanese and European central banking institutions.

1997-1998: The Asian financial crisis causes the yen to fall to almost 148 against the dollar in August. This is even though the Bank of Japan has been joined by the U.S. to purchase yen.

Between January 1999 and April 2000, Bank of Japan has sold the yen at most 18 times. The Bank of Japan did this via the Federal Reserve, once via European Central Bank. It is concerned that an overly strong yen could thwart economic recovery. The Yen keeps strengthening.

September 2001 – The Bank of Japan purchases yen from the United States in an intervention. BOJ is represented by the ECB, New York Federal Reserve and other Federal Reserves.

May/June 2002 – Bank of Japan intervenes in order to sell yen. This intervention is often supported by Federal Reserve and ECB. The yen is still on the rise.

March 2004 – The conclusion of the 15-month-long campaign to stop the rise of Japan’s yen. Japan spent more than 300 billion dollars on interventions, or 35 trillion yen.

Sept. 15, 2010, Japan intervenes on the currency market, selling yen for the first-time in six years. This is to stem currency rising after dollar hit a 15 year low at 82.87 yen.

March 18, 2011: The G7 nations intervene jointly to stop yen volatility after it spikes to an all-time high following a huge earthquake. There was speculation that Japanese firms might repatriate assets abroad to finance reconstruction.

August and October 2011 – Japan intervenes in order to limit gains officials fear could derail economic recovery following the March earthquake/tsunami.