Traders Alert Hedge Funds on Potential Japanese Ministry Intervention to Support Yen

On June 30, traders reported that hedge funds are reluctant to establish new long positions in USD/JPY at current levels, fearing that Japan may intervene in the market on Friday while the U.S. markets are closed for a public holiday. Traders added that if Powell makes hawkish comments and U.S. non-farm payroll data supports Fed rate hikes, the USD/JPY exchange rate could approach 165. However, traders noted that the Japanese Ministry of Finance has repeatedly warned of potential intervention, and liquidity in the U.S. market tends to be thin during holiday closures, which could prompt Japanese authorities to intervene on Friday.
USDJPY0.05%
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