Yen Tests 160 Level Ahead of U.S. Non-Farm Payroll; Investors Hold Largest Short Positions Since July 2024

According to ANZ Bank, on Friday (June 5), the yen tested the 160 level, prompting strong warnings from Japanese officials. The U.S. dollar remained stable ahead of key U.S. non-farm payroll data release, while Middle East tensions supported safe-haven demand. ANZ Asia research noted that "the market may be reluctant to excessively test the Bank of Japan ahead of the U.S. jobs report." Despite intervention risks, investors have built the largest yen short positions since July 2024.
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