The currency pair briefly fell amid speculation over potential Japanese intervention but rebounded to near 157.30.
The USD/JPY pair dropped sharply from 157.70 to 156.75 before recovering to around 157.30, erasing more than half its losses. The move occurred amid low liquidity and lingering questions over Japan’s willingness to intervene again in currency markets.
Earlier speculation suggested Tokyo officials might act to support the yen, though recent signals from Japan’s Ministry of Finance have been mixed. Previous interventions have shown diminishing effectiveness, raising doubts about further action.
Markets remain cautious as the pair stabilizes near 157.30, with traders monitoring for official comments or policy shifts.