USD/JPY Slumps Amid Intervention Fears and Hawkish BoJ Signals

The USD/JPY exchange rate fell for a second consecutive day on Thursday, trading near 156.80 in European hours after a rapid decline sparked speculation about potential Japanese intervention.

The pair's sharp drop, which saw it fall by nearly 1% within minutes on Wednesday afternoon and again overnight, has raised concerns that official action may be taken to support the yen.

Hawkish comments from Bank of Japan board member Hajime Takata have contributed to the yen's strength, with Takata arguing for a shift towards faster, non-traditional rate hikes linked to global growth and AI-related investment.