Yen Rises Amid Japan Intervention Warnings

(RTTNews) - The Japanese yen strengthened against other major currencies in the European session on Thursday, as Japanese Finance Minister Satsuki Katayama issued a clear intervention warning.

Katayama confirmed that the "timing for decisive action is near" and that the Japanese government is moving closer to entering the foreign exchange markets.

Among the G8 currencies, the Japanese yen was performing the worst on Thursday. In contrast to the hawkish tone of the Bank of Japan's (BoJ) last monetary policy meeting, the most recent spike in oil prices and the possibility of a lengthy blockade in the Strait of Hormuz have rekindled worries about the implications for the Japanese economy, which imports crude. Investors watched the latest developments in the Middle East and awaited policy updates from the European Central Bank and the Bank of England.

Data from the Cabinet Office showed that Japan's consumer sentiment weakened further in April to the lowest level in one year. The seasonally adjusted consumer confidence index dropped to 32.2 in April from 33.3 in March. The expected score was 32.8. Moreover, this was the lowest reading since April 2025, when it was 31.5.

In the European trading, the yen rose to nearly a 4-week high of 183.83 against the euro, from an early near 2-week low of 187.56. The next possible upside target for the yen is seen around the 182.00 region.

Against the pound and the Swiss franc, the yen advanced to more than 3-week highs of 212.15 and 199.83 from an early 18-year low of 216.61 and a 2-day low of 203.09, respectively. If the yen extends its uptrend, it is likely to find resistance around 209.00 against the pound and 198.00 against the franc.

Against the U.S. and the Canadian dollars, the yen climbed to nearly a 2-month high of 156.85 and nearly a 3-week high of 114.96 from an early 9-month low of 160.73 and more than a 1-1/2-year low of 117.52, respectively. The yen may test resistance around 154.00 against the greenback and 111.00 against the loonie.

Against the Australia and the New Zealand dollars, the yen advanced to near 2-week highs of 112.31 and 92.06 from early lows of 114.45 and 93.76, respectively. The yen is likely to find around 110.00 against the aussie and 91.00 against the kiwi.

Looking ahead, Canada GDP data for February, U.S. personal income and spending for March, U.S. GDP price index for the first quarter, U.S. weekly jobless claims data, U.S. PCE price index for March, U.S. Chicago PMI for April and U.S. Consumer Board's leading index for February are slated for release in the New York session.