The yen weakened after initial strength from joint US-Japan intervention, raising speculation of further policy action.
The USD/JPY pair climbed to 158.39 on Friday, erasing some of the yen’s earlier gains following coordinated intervention by Japanese and US authorities. The reversal has reignited market expectations of additional measures to stabilize the currency.
Prior to the intervention, the yen had faced sustained pressure, with USD/JPY trading near multi-decade highs. Analysts noted the pair’s resilience despite recent official efforts to support the yen, highlighting persistent divergence in monetary policy between the US and Japan.
Markets are now closely watching for signals from policymakers, with traders pricing in potential further steps if the yen’s decline accelerates.