Yen Holds Narrow Range in Thin Holiday Trade Amid Intervention Watch
USD/JPY traded in a tight band around 159.30 on Tuesday as Japanese markets were closed for Mountain Day, keeping volumes low. Speculation over possible yen-buying intervention continues to hover over the pair.
The Japanese yen showed little movement against the dollar in Asia on Tuesday, with USD/JPY hovering near 159.30 after gaining almost 1% the previous day. Trading was rangebound as Japanese financial markets shut for the Mountain Day public holiday, thinning liquidity.
Market participants remain alert to potential yen-buying intervention by Japanese authorities, a recurring theme after recent sharp declines. However, with local markets closed, the pair lacked fresh catalysts.
The dollar’s broader strength has kept USD/JPY elevated, though holiday conditions and the intervention narrative together suppressed volatility in the session.
Source: FXStreet Forex News