MOF Intervention Sends Yen Soaring Amid BOJ Meeting Anticipation

The Japanese yen has seen its biggest rally in months following what appears to be intervention by Japan's Ministry of Finance (MOF). The USD/JPY currency pair suffered its largest one-day decline since April, with a drop of nearly 600 pips from the day's high to an 11-week low.

The volatility seen on Thursday was reminiscent of the MOF's previous intervention on April 30. The EUR/JPY and AUD/JPY pairs also fell significantly, with daily ranges matching those seen during the April 30 intervention.

The focus now shifts to today's Bank of Japan (BOJ) meeting, although much of the excitement may already be behind us. The BOJ is widely expected to leave its policy rate unchanged, placing emphasis on Governor Ueda's guidance.