Rabobank analyst Jane Foley says market speculation is growing that Japanese authorities may use thin US-holiday liquidity on Friday to intervene in the yen; no action could be the more surprising outcome. She judges further intervention likely, but warns a single round of intervention is unlikely to alter entrenched negative market sentiment toward the yen. Yen weakness is partly dollar-driven, and gains in Japanese equities may prompt foreign investors to increase hedging against yen depreciat

Rabobank analyst Jane Foley says market speculation is growing that Japanese authorities may use thin US-holiday liquidity on Friday to intervene in the yen; no action could be the more surprising outcome. She judges further intervention likely, but warns a single round of intervention is unlikely to alter entrenched negative market sentiment toward the yen. Yen weakness is partly dollar-driven, and gains in Japanese equities may prompt foreign investors to increase hedging against yen depreciation.