With Monday holidays approaching in Europe and the US, yen traders remain vigilant about intervention risks
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Investors will closely monitor trading activity after the Tokyo session, as lower participation could intensify exchange rate volatility. The yen is currently hovering around 159 against the US dollar, near its lowest level since April 30. Traders’ concerns about the holidays are not unfounded. On April 30, during Japan’s Golden Week, the Japanese government intervened in the foreign exchange market, possibly purchasing up to 10 trillion yen before the holiday ended on May 6. “The yen has broadly weakened again,” said Neil Jones, Managing Director of Foreign Exchange Sales and Trading at TJM Europe. “The Japanese Ministry of Finance could very well consider selling US dollars against yen before the Tokyo market closes on Monday.”
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