Traders are on alert for a rising risk of Japan intervening to support the yen, with a U.S. jobs report later Friday looming as a potential catalyst for sharp moves in the currency.
The yen is within reach of the ?160 per dollar level, a breach of which would increase concern among policymakers in Tokyo about the weak currency¡¯s impact on business and consumers. Strategists see a possible run toward this psychological level ¡ª if the jobs figures are strong. This in turn would bring the multidecade weak point of ?161.95 into sight.
The yen depreciated as far as ?158.55 on Wednesday, a level last seen in July, when Japan most recently waded into the currency market. It traded little changed at ?158.26 as of 12:11 p.m. in Tokyo on Friday. Japanese markets will be shut on Monday for a holiday.
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