Yen Strengthens Ahead of Key Rate Decision

The Japanese yen continued its strong performance on Friday but eased against the US dollar after reaching a high of 155.25 per dollar during Asian trading.

This move puts the currency on track for its biggest weekly gain in over a month, with a potential 2.2% increase for the week.

The yen's appreciation appears to be driven by changing expectations of monetary policy rather than confirmed government intervention.

Analysts point out that traders are becoming increasingly nervous about the possibility of further official action from Japan or the US, with some speculating about a potential Bank of Japan rate hike later this month.