The yen is seen as vulnerable to sharp moves in the coming days as Japan has a three-day holiday through Wednesday, which reduces trading liquidity, according to market reporting.
The concern follows disappointment among investors after the Bank of Japan’s (BOJ) latest communication, which they viewed as lacking stronger guidance on the pace of future interest rate hikes. One outlet highlights that the reduced liquidity during the holiday period can make it easier for exchange rates to swing quickly, particularly if investors adjust positions.
Across coverage, the focus is on the combination of thinner market trading and expectations around BOJ policy. Bloomberg also points to the risk of further declines for the yen over the next week, while emphasizing that investor sentiment is shaped by the perceived gap between expectations for clearer rate-hike timing and what the BOJ signaled.
Japan Times likewise links the immediate trading conditions to the holiday, underscoring that liquidity is likely to be lower as markets reopen.
