Dollar set for steep weekly fall vs yen as Japan may intervene again

Traders fear more yen support during Japan’s holiday window

The dollar is on track for its sharpest weekly drop versus the yen since February, as traders suspect Japan may be stepping into the market to curb volatility. Japanese officials have signaled unease, keeping sentiment cautious. Still, lasting yen strength is far from certain because Japan’s policy stance diverges from the Federal Reserve, and attention turns to possible action during Golden Week.