The Japanese yen briefly strengthened to around 155.5 per dollar on Friday before easing, following a session in which Tokyo was widely suspected of intervening in the foreign exchange market and officials issued what they described as a “final” warning to speculators betting against the currency. While the Ministry of Finance has not formally confirmed any intervention, the abrupt and pronounced move in the yen has led most traders to attribute the rally to official support. Market participants are now weighing the chances of further action, as authorities in Japan typically intervene in multiple rounds when they step in to buy yen. Earlier in the week, the currency had depreciated beyond the closely watched 160-per-dollar level, a psychologically important threshold that previously prompted official intervention in July 2024. The recent moves in the yen come against the backdrop of policy decisions by both the Bank of Japan and the Federal Reserve, which have each kept interest rates on hold, preserving a wide US–Japan rate differential that supports dollar strength and continues to exert downward pressure on the yen.