Surprise weakness in US nonfarm payrolls sent the yen sharply higher on Friday, but traders remained cautious about renewed Japanese intervention after Tokyo and Washington jointly stepped into FX markets only days earlier to support the weak currency. USD/JPY slid as much as 1.1% to about 156.68, well below July's 40-year peak of 163.99. It is unclear whether Japanese authorities participated in the move. Moves at the short end of the US yield curve reflected dollar weakness and a softer Fed ti

Surprise weakness in US nonfarm payrolls sent the yen sharply higher on Friday, but traders remained cautious about renewed Japanese intervention after Tokyo and Washington jointly stepped into FX markets only days earlier to support the weak currency. USD/JPY slid as much as 1.1% to about 156.68, well below July's 40-year peak of 163.99. It is unclear whether Japanese authorities participated in the move. Moves at the short end of the US yield curve reflected dollar weakness and a softer Fed tightening outlook. Mitsubishi UFJ senior FX strategist Lee Hardman said: "Nonfarm payrolls were much lower than expected, so dollar weakness is reasonable—look at the front end of the US yield curve. This is a rare downside surprise and clearly weakens market expectations for Fed tightening. We expect a marked market reaction and broad dollar selling."