The Japanese Yen strengthens as traders speculate on potential government intervention to support the currency against the USD.
The USD/JPY pair declined for a second consecutive day, trading near 159.90 in Asian hours on Friday. The drop follows heightened market speculation of Japanese authorities intervening to prop up the Yen amid its recent weakness.
Prior to this move, the pair had hovered near multi-decade highs, with traders closely monitoring official statements for signs of intervention. The last confirmed intervention occurred in 2022, when the Yen hit similar lows against the dollar.
Market participants remain cautious as the Yen’s depreciation pressures persist, with no immediate signs of a policy shift from the Bank of Japan or the finance ministry.