⚠️Japan may be forced to INTERVENE in currency markets again:

The Yen is sitting just shy of its 2024 high of 161.96, with a break above that level marking its weakest since December 1986.

This comes despite Japan already having spent a record ¥11.73 trillion, or ~$72.8 billion, defending the currency through May 27 this year.

Meanwhile, Finance Minister Satsuki Katayama reiterated that Japan "can take bold action" against speculative moves, though her remarks were notably less assertive than those made just before the late April intervention.

Earlier this week, the Bank of Japan raised rates to their highest level since 1995, yet the move has done little to support the Yen, as the rate gap with the US remains wide.

Furthermore, speculative net short positions against the Yen have climbed to their highest level since July 2024.

All of this comes as thin trading liquidity from the US Juneteenth holiday could amplify moves, raising the odds that Japan steps in with an element of surprise this time.

Markets are now bracing for a potential repeat of April's record intervention.