Yen Rises Amid Japan Fx Intervention

(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Wednesday, amid potential large-scale government actions.

During the current Golden Week festivities, Japanese Finance Minister Satsuki Katayama issued a warning about "decisive measures" against speculative actions.

After the JPY broke the psychological mark of 160.00 last week, Japanese officials reportedly spent almost $35 billion to stabilize the currency.

After last week's intervention to stop weakening, traders are still on edge about the possibility that Japanese regulators would return to the market. Japan can take measures against speculative foreign exchange movements, according to Japan's Katayama.

Traders await the U.S. ADP Employment Change report is due later on the day.

Meanwhile, Asian stock markets traded higher, as tumbling crude oil prices after US attempts to unblock Straight of Hormuz traffic boosted market sentiments and eased supply concerns. Risk sentiment also improved amid signs of de-escalation in the Middle East conflict.

Optimism grew that a deal with Tehran could be within reach, after the US declared an end to offensive operations against Iran, reaffirmed the ceasefire, and temporarily paused efforts to help stranded vessels exit the Strait of Hormuz.

US Secretary of State Marco Rubio announced that "Operation Epic Fury is concluded," noting that its objectives had been met.

Later on Friday, the focus will turn to the US jobs figures for April. 60,000 new jobs are expected to be added to the US economy in April. During the same time frame, the unemployment rate is predicted to be constant at 4.3%.

In the Asian trading today, the yen rose to a 1-1/2-month high of 182.05 against the euro, from an early 6-day low of 185.04. The yen may test resistance around the 181.00 region.

Against the U.S. dollar, the yen advanced to a 2-1/2-month high of 155.04 from an early low of 157.89. On the upside, 154.00 is seen as the next resistance level for the yen.

Against the pound, the Swiss franc and the Canadian dollar, the yen climbed to 6-day highs of 210.77, 199.01 and 114.13 from early 6-day lows of 214.23, 202.02 and 116.10, respectively. If the yen extends its uptrend, it is likely to find resistance around 209.00 against the pound, 196.00 against the franc and 112.00 against the loonie.

Against the Australia and the New Zealand dollars, the yen edged up to 112.38 and 92.26 from early 6-day lows of 114.31 and 93.74, respectively. The next possible upside target for the yen is seen around 110.00 against the aussie and 90.00 against the kiwi.

Looking ahead, PMI reports from major European economies and the U.K. for April and Eurozone PPI for March are slated for release in the European session.

In the New York session, U.S. MBA mortgage approvals, U.S. ADP employment data for April, Canada Ivey PMI for April and U.S. EIA crude oil data are set to be published.

Japanese stock markets remain closed in observance of Constitution Day holiday.