USD/JPY Rebounds as Yen Weakens Despite Intervention Fears
The US dollar strengthened against the Japanese yen on Friday, recovering from a sharp decline the previous day amid speculation that Tokyo may have intervened to support the yen after it hit a 40-year low.
USD/JPY traded higher on Friday, rebounding from a nearly 0.90% drop in the prior session. The move comes as traders remain wary of possible intervention by Japanese authorities after the yen slid to a 40-year low against the greenback earlier this week.
Market participants are closely monitoring any signs of official action, with the Bank of Japan and Ministry of Finance historically stepping in to curb excessive yen weakness. The rebound suggests short-covering or repositioning ahead of the weekend, though intervention risks keep the pair volatile.
Source: FXStreet Forex News