The yen is trading precariously near the weakest level in nearly four decades, putting investors on guard for potential intervention from Japan to defend its currency.
With the Juneteenth trading break looming in the United States, thin liquidity conditions could open the door for Japan to step into markets again, as it did during its own holidays in late April and early May, when it intervened to the tune of 11.7 trillion yen ($A103.35 billion).
The yen changed hands at 161.25 per dollar in early trading on Friday in Tokyo after hitting 161.81 overnight, its weakest since July 2024, wiping out all gains from the previous intervention bout following a hawkish tilt by the US Federal Reserve. A break above the currency pair's 2024 high of 161.96 would send the yen to its weakest level since 1986.
