Traders say hedge funds are wary of the Ministry of Finance intervening on Friday to support the yen exchange rate.

Golden Finance reported on June 30 that traders said hedge funds are reluctant to establish new long USD/JPY positions at current levels, fearing Japan might intervene when the U.S. market is closed on Friday due to a public holiday. The traders added that if Walsh makes hawkish remarks and the U.S. non-farm payroll data supports a Fed rate hike, the USD/JPY exchange rate could approach 165. However, the traders noted that Japan’s Ministry of Finance has repeatedly warned of the possibility of intervention, and liquidity will be thinner when the U.S. market is closed for the holiday, so the Japanese side may take action on Friday.
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