The USD/JPY market fluctuated sharply during the extended holiday period. While some observers suggested that the government and the Bank of Japan may have intervened to buy yen, others said that speculative players such as hedge funds had initiated yen-selling trades.
The USD/JPY exchange rate continued to make large moves in the foreign exchange market during the extended holiday period, and reports indicated that the government and the Bank of Japan were believed to have intervened to buy yen.
In response, some observers said that speculative players such as hedge funds had initiated yen-selling trades, creating a risk of a rapid weakening of the yen and market turmoil.