Traders suspect Japanese authorities intervened after the yen spiked sharply ahead of key US jobs data.
The Japanese yen jumped suddenly in early trading, with USD/JPY falling roughly 100 pips from 162.20 to 161.13 before partially retracing. The move sparked speculation of intervention by Japanese authorities, though the finance ministry declined to comment. Sources suggested a shift to “ambush tactics” against yen speculators amid heightened intervention risks.
European markets traded cautiously ahead of the US nonfarm payrolls report, with S&P 500 futures flat and Nasdaq futures down 0.2%. The CAC 40 and DAX rose 0.8% and 1%, respectively, while US 10-year yields climbed 1.8 bps to 4.49%. WTI crude fell 1.4% to $67.60, and gold gained 0.9% to $4,064.
Traders remained on edge as the US bond market prepares for an early close ahead of the Independence Day holiday. The yen’s volatility overshadowed a relatively stable Swiss inflation print for June, with broader markets awaiting the NFP report to close the week.