The Japanese Yen gained strength after renewed verbal intervention from Tokyo officials. As a result, USD/JPY declined for the fourth consecutive session, trading near 152.90 during Asian market hours.
Japan’s Vice Finance Minister for International Affairs, Atsushi Mimura, stated that authorities are closely monitoring currency movements with a high level of urgency. He emphasized that officials remain alert amid renewed volatility in the Yen.
Finance Minister Satsuki Katayama also reaffirmed that the government is prepared to respond to excessive currency fluctuations in accordance with the US-Japan joint agreement.
Additional support for the Yen comes from optimism surrounding Prime Minister Sanae Takaichi’s expansionary fiscal plans. Investors expect these measures to stimulate domestic growth, support households and businesses, and strengthen Japan’s economic outlook. Improved fiscal discipline and a market-friendly policy direction have further boosted confidence, leading to increased investment in Japanese equities.
However, the downside in USD/JPY may remain limited as the US Dollar finds support from stronger-than-expected US labor market data. The Federal Reserve is now expected to maintain a cautious stance on its policy outlook.
In January, US Nonfarm Payrolls increased by 130,000, exceeding expectations of 70,000. December’s figure was revised to 48,000. Meanwhile, the unemployment rate declined to 4.3% from 4.4%.
Market participants are now focusing on the upcoming US Consumer Price Index (CPI) report, which could provide further direction for the currency pair.
