This surprise and rare market intervention is a much-needed response from the Kishida administration. This will help to tackle rising import costs, which have been damaging Japan's economy. The government has been actively weighing options to reduce volatility and is carefully walking a fine line to achieve the best results.
Selling dollars isn't enough to restore the yen's value. The impacts of this intervention will be limited as Japan won't be able to keep intervening for much longer. To deliver a solution to its weakening currency, the Bank of Japan must follow the example of the Fed and many other central banks and raise rates.