Japanese yen surged amid Speculation that authorities may Intervene again.

The Japanese yen (JPY) rose to more than a two week high versus the US dollar on Wednesday. Fueling speculation that Japan’s financial authorities intervened for the second time this week to support the native currency. This followed the post-FOMC US Dollar (USD) selling. Which dragged the USDJPY pair to the 153.00 mark. The JPY, however, reduced some of its strong intraday Gains and losses persisted throughout Thursday’s Asian session. Pushing the currency pair back above the round number of 156.00.

The impetus is fading as a result of the conflicting policy outlooks of the BoJ and the Fed.

The Bank of Japan’s (BoJ) decision to leave interest rates near zero. As well as its suggestion that it will continue to buy government bonds in accordance with March guidance. Represents a significant departure from the Federal Reserve’s (Fed) hawkish signals. In fact, the US central bank stated on Wednesday. That it wants to increase confidence that inflation will continue to decline before decreasing interest rates. This, together with the development of some USD purchasing, supports the USDJPY pair. With a bullish risk tone, undermining the safe-haven Japanese yen.

Traders are now looking to second-tier US data for a boost ahead of the NFP release on Friday.

Traders now look to the US economic docket. Which includes the release of Challenger job cuts, the regular weekly initial jobless claims, and trade balance data will provide some momentum later in the early North American session. The attention however, will remain on the carefully awaited US monthly employment data. Known as the Nonfarm Payrolls (NFP) report, which is released on Friday.

Daily Market Movers: Japanese Yen fails to profit on Wednesday’s potential intervention-led strong surge up.

A potential Japanese Yen buying coordinated by Japan’s Ministry of Finance sparked a strong Japanese yen slide to almost a two week low during the late US session on Wednesday, however momentum is fading near the 153.00 level.
Masato Kanda, Japan’s senior currency diplomat, declined to confirm whether officials had intervened into the FX market to strengthen the native currency and said that they will The intervention data will be released at the end of this month.
The minutes of the Bank of Japan’s March policy meeting indicated on Thursday that the central bank must continue to provide financial support to the economy in order to achieve long-term, domestic demand-driven recovery.
The Federal Reserve’s lack of adjustment in forward guidance on Wednesday, indicating that it is leaning toward lower borrowing costs later this year, was interpreted as dovish and contributed to the overnight US Dollar slide.
Fed Chair Jerome Powell stated in the post-meeting news conference that while inflation has decreased significantly over the last year, it remains too high, and that further progress on inflation is not certain due to the unpredictable path.
Fed fund futures traders are currently pricing in 35 basis points of easing this year, up from 29 before the statement, is still less than the three 25-basis-point cuts forecast by the US central bank and helps to stimulate USD demand.
A optimistic tone in the US equities markets helps to driving flows away from the safebhaven JPY. Giving the USDJPY pair an extra boost on Thursday ahead of the second-tier US economic releases.
Meanwhile, market attention is focused on Friday’s US employment report. Which will now play a critical role in determining near-term USD price dynamics and providing considerable impetus to the currency pair.