Traders are on alert for a rising risk of Japan intervening to support the yen, with a U.S. jobs report later Friday looming as a potential catalyst for sharp moves in the currency.
The yen is within reach of the ¥160 per dollar level, a breach of which would increase concern among policymakers in Tokyo about the weak currency’s impact on business and consumers. Strategists see a possible run toward this psychological level — if the jobs figures are strong. This in turn would bring the multidecade weak point of ¥161.95 into sight.
The yen depreciated as far as ¥158.55 on Wednesday, a level last seen in July, when Japan most recently waded into the currency market. It traded little changed at ¥158.26 as of 12:11 p.m. in Tokyo on Friday. Japanese markets will be shut on Monday for a holiday.
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