Japan could exploit thin liquidity during a US holiday to intervene in FX markets as USD/JPY remains elevated near post-Fed levels.
The dollar extended its post-Federal Reserve gains, pushing USD/JPY higher as traders digested the central bank’s latest policy signals. The pair remains well supported above key levels, raising speculation of potential Japanese intervention to curb yen weakness.
Today’s US market holiday could provide an opportune window for Tokyo to act, given reduced liquidity and lower volatility risks. Japan has previously intervened when USD/JPY approached or exceeded 150, though no official confirmation has been issued this time.
No immediate market reaction was reported, but traders are monitoring for signs of official action or verbal warnings from Japanese authorities.