Ella 
The Japanese yen (JPY) saw fresh supply after rising to a two-week high against the U.S. dollar early on Friday and fell to daily lows during the first half of European trading. The greenback’s decline may be attributed to some follow-on dollar buying, supported by hawkish comments from Federal Reserve officials overnight. That said, any meaningful depreciation moves appear elusive amid a prevailing risk-off environment that tends to drive flows into the safe-haven Japanese yen.
Beyond this, speculation that Japanese authorities will intervene in the market to support the domestic currency should help limit the downside for the yen. In addition, Bank of Japan Governor Kazuo Ueda hinted that interest rates may be raised if the yen’s movements affect inflation and wages, which may further inhibit yen shorts from making new bets. This in turn calls for caution pending confirmation that the USD/JPY pair’s pullback from multi-decade highs is over, as traders are eyeing US non-farm payrolls data for fresh impetus.
