Yen Rises Amid Intervention Risks

(RTTNews) - The Japanese yen strengthened against other major currencies in the European session on Thursday, due to rising investor expectations of government intervention.

Japanese officials are reportedly giving up their long-standing practice of telegraphing intervention risks, according to persons familiar with the situation who spoke to Reuters. Rather, they are moving toward a more focused, covert operation aimed at pressuring speculators and raising the price of betting against the depreciating currency.

In order to remove speculative short positions, Japan's Ministry of Finance (MOF) may enter the market suddenly while purposefully avoiding any public "line in the sand" currency rate that could lead to action. Finance Minister Satsuki Katayama emphasized this change by reiterating cautions that authorities are always ready to react appropriately to changes in the currency market.

European stocks traded higher as gains in defensive stocks offset the loss of momentum in the AI-driven tech rally.

As inflation and interest-rate concerns ease, investors await the all-important U.S. nonfarm payrolls report later in the day for further direction.

In European trading today, the yen rose to a 6-day high of 183.77 against the euro, a 2-week high of 160.92 against the U.S. dollar and a 3-day high of 199.57 against the Swiss franc, from early lows of 185.09, 162.60 and 201.03, respectively. If the yen extends its uptrend, it is likely to find resistance around 186.00 against the euro, 159.00 against the greenback and 198.00 against the franc.

Against the pound, the yen advanced to a 2-day high of 214.67 from an early more than a 2-month low of 216.08. The next possible upside target for the yen is seen around the 210.00 region.

Against Australia, the New Zealand and the Canadian dollars, the yen climbed to nearly a 3-month high of 111.15, a 2-day high of 91.61 and more than a 4-month high of 113.44 from early lows of 112.16, 92.40 and 114.40, respectively. The yen may test resistance around 110.00 against the aussie, 90.00 against the kiwi and 112.00 against the loonie.

Looking ahead, U.S. jobs data for June, Canada S&P Global manufacturing PMI for June, U.S. factory orders for May and U.S. Baker Hughes oil rig count data are slated for release in the New York session.