EL7.AI
ForexUpdated•Originally published 2 July 2026•Updated 2 July 2026•
1 min read

USDJPY Plunges 100 Pips as Japan Intervention Speculation Grows Amid MoF Silence

Key Facts

1The USDJPY pair declined after failing to sustain its recent peak, amid short-term bearish momentum.
2Gold is bouncing from the $4,000 support level as traders await upcoming US jobs data.

Amid heightened anticipation for US labor data, the USDJPY pair faced intense selling pressure, dropping 100 pips from 162.20 to 161.13 within a single hour. According to reports, Japan's Ministry of Finance maintained silence and declined to comment on the sharp moves, fueling speculation that authorities may be employing 'ambush tactics' to deter currency speculators.

This sudden price action coincides with growing expectations that Japan might intervene in the currency market tomorrow, potentially taking advantage of thin liquidity during the US market holiday. Per market data, Japan's Retail Sales grew by 5.3% annually, beating the 3.2% forecast, providing fundamental support for the Yen against a Dollar weighed down by a 2.1% US GDP growth rate recorded on June 25, 2026.

Traders should monitor USDJPY support levels near 161.13 (as of July 3, 2026) and Gold's stability above the $4,000 mark. According to the economic calendar, tomorrow's US market holiday serves as a critical window for potential Japanese intervention, keeping volatility high ahead of the upcoming Non-Farm Payrolls report.