Traders remain cautious as suspected Japanese official intervention supports the yen after Wednesday’s rally.
The USD/JPY pair held steady around 156.40 in early European trading on Thursday, reflecting market caution over potential Japanese intervention. The yen’s recent strength followed speculation that authorities stepped in to curb excessive weakness, though no official confirmation has been provided.
Prior to Wednesday’s rally, the yen had faced sustained pressure, with USD/JPY testing multi-decade highs above 160. Analysts noted that similar intervention efforts in late April temporarily reversed the pair’s upward momentum, though the effect was short-lived.
Trading volumes remained subdued as investors awaited further signals from Japanese officials or upcoming economic data that could influence the Bank of Japan’s policy stance.