Japanese Yen surged against the Dollar after a sharp drop in USD/JPY raised intervention speculation, though no official confirmation emerged.
The Japanese Yen reversed course on Thursday, with USD/JPY tumbling nearly 3% in under an hour to below 158.00, its lowest level since mid-May. The rapid decline sparked speculation of a foreign exchange intervention by Japanese authorities, though no official statement confirmed the move.
Prior to the drop, USD/JPY had traded higher earlier in the week, with the Yen showing strength only after the suspected intervention. The pair recovered slightly by session close but remained sharply lower for the day.
Markets now await Eurozone HICP data and U.S. consumer sentiment revisions, though the Yen’s sudden rally remains the focal point for traders.