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USD/JPY: Yen under pressure as intervention looms

The Japanese Yen is teetering on the brink as the USD/JPY currency pair rockets towards a 34-year high, fueled by speculation of intervention from Japanese authorities and a record surge in short bets against the …

The Japanese Yen is teetering on the brink as the USD/JPY currency pair rockets towards a 34-year high, fueled by speculation of intervention from Japanese authorities and a record surge in short bets against the Yen.

Analysts warn of a potential tipping point. Intervention by Japan could send USD/JPY tumbling through the 150 mark.

This follows a relentless decline in the Yen’s value. Data released last week showed speculative short positions against the Yen hitting a 17-year high, fueled by recent strong US inflation data. The USD/JPY subsequently surged to a 34-year high of nearly 154 on Monday.

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Japanese officials are expressing concern. Masato Kanda, Japan’s top currency diplomat, confirmed ongoing discussions with the US and other financial authorities regarding currency markets. Finance Minister Shunichi Suzuki also acknowledged closely monitoring the situation.

By lunchtime on Monday, USD/JPY was trading at 153.87, up 0.4% on the day. The Yen’s fate remains uncertain, with potential for significant volatility in the coming days as markets wait for Japan’s next move.


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