Yen Gains on Stealth Intervention Risks, USD/JPY Slides
The Japanese yen strengthens against the dollar as traders increasingly expect stealth intervention by authorities, pushing USD/JPY lower from recent highs.
The Japanese yen is rallying on heightened speculation that authorities are conducting stealth intervention to support the currency. USD/JPY extended its decline during Asian trading on Thursday, falling to around 162.40 after pulling back from 40-year highs.
The pair has lost ground as the yen benefits from growing trader expectations of government intervention in the foreign exchange market. The move marks a notable reversal from the recent multi-decade peak, with market participants now pricing in a higher probability of direct action by Japanese officials to stem yen weakness.
Source: FXStreet Forex News