Hedge Funds Avoid USD/JPY Long Positions as Japan Fiscal Ministry Signals Possible Friday Intervention

USDJPY0.27%
According to traders, hedge funds are reluctant to establish new long positions in U.S. dollar against Japanese yen at current levels, fearing Japan's finance ministry may intervene on Friday when U.S. markets close for the holiday. Traders noted that the Ministry has repeatedly warned of possible intervention, and lighter liquidity during the U.S. market closure could make Friday an opportune time for Japanese authorities to step in. If hawkish remarks by a U.S. official combine with supportive non-farm employment data, USD/JPY could approach 165.
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