USD/JPY drops to 161.20 amid heightened speculation over potential Japanese currency intervention ahead of US jobs data.
The yen strengthened sharply, with USD/JPY falling 0.8% to 161.20 after a volatile session that saw the pair drop 100 pips to a low of 161.13. The move followed reports of Japan adopting ambush tactics to deter yen speculators, fueling uncertainty over possible intervention.
Earlier, the pair rebounded to 161.90 before drifting lower as traders assessed the likelihood of official action. Previous interventions occurred during Japanese holidays, raising expectations of a repeat with US markets closed tomorrow. USD/JPY remains near 2024 highs, adding to pressure on authorities.
Markets are on edge ahead of the US non-farm payrolls report, with some traders reducing positions to avoid potential volatility. The finance ministry declined to comment on the yen’s sudden spike, leaving intervention speculation unresolved.