On August 12, the Japanese yen depreciated by 0.1% against the US dollar at one point, reaching 159.39, returning to the 159 level. The recent continuous depreciation of the yen has erased about half of the gains brought by the US-Japan joint intervention on July 31 (which previously pulled the yen from around 163 to 155). Market analysis suggests that the core reason for the failure of this intervention is the continuously widening interest rate gap between the US and Japan. The 10-year US government bond yield is currently 4.686%, while the Japanese government bond yield for the same maturity is only 2.846%, a spread of over 180 basis points, providing strong momentum for carry trades. Market attention is now turning to the Bank of Japan (BOJ), whose next monetary policy meeting is scheduled for September, with the 160 level being seen as the authorities' political red line.