Thin market conditions due to Japan’s Mountain Day holiday keep the pair range-bound amid ongoing intervention speculation.
The USD/JPY pair traded narrowly around 159.30 in Asian hours, holding near levels reached after a nearly 1% gain the prior day. Low liquidity prevailed as Japanese markets remained closed for the Mountain Day holiday, limiting price movement.
Prior to the holiday, the pair had shown volatility, with traders monitoring potential intervention by Japanese authorities. The 159 level has drawn attention as a key threshold, though no official action has been confirmed. Market participants remain cautious amid broader USD strength.
No significant market reaction was observed during the session, with trading volumes expected to remain subdued until Japanese markets reopen.