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Yen jumps as traders weigh odds of further US-Japan intervention
The yen moved as much as 1.4% higher versus the dollar in Tokyo before trimming gains, and was quoted around 156.30.
The Japanese yen surged on Monday after speculation grew that authorities could step in again to support the currency following coordinated action by the United States and Japan last week, LiveMint Markets reported. During Tokyo trading, the yen swung from a small decline to gains of as much as 1.4% versus the dollar. It later pared much of the move in choppy trade, quoted around 156.30 as of 11:37 a.m. local time, before ending New York trading on Friday around 157.40.
Gareth Berry, a strategist at Macquarie Group, said the price action alone resembles intervention, citing what he described as a limited window for Japan's Ministry of Finance to affect the USDJPY chart and break support levels. The report added that the US Treasury Department is working with Japan to a degree unseen in decades, raising the stakes for traders positioned against the yen.
Japan confirmed its first joint intervention with the US in currency markets in 15 years, according to Finance Minister Satsuki Katayama. US Treasury Secretary Scott Bessent said the US would not hesitate to step in again, while President Donald Trump characterized the prior action as “a signal of friendship,” and strategists at Goldman Sachs said further intervention is likely if the yen's recent move unwinds.