Japan yen watch intensifies as weak U.S. payrolls set up test for Tokyo’s intervention tactics
The yen’s biggest move this week wasn’t from a clear signal of Japanese intervention—it was out of Washington. Dollar/yen dropped to 160.78 on Thursday after a soft U.S. payrolls print, down about 1.2% from Tuesday’s 162.66. Reuters called that earlier peak the yen's weakest in four decades. Tokyo now gets a little breathing room, but the trade is still on: Japan’s Ministry of Finance wants short sellers looking over their shoulders for a surprise, not just guarding a level. Reuters said Japanese officials are dropping their old habit of giving the market advance warning. According to sources, they're now steering clear of setting any clear “line in the sand,” so traders don’t know when yen-buying might come. The idea is