USD/JPY volatility spikes as Japan warns against speculative yen trading

USD/JPY has experienced heightened volatility with intraday swings exceeding 150 pips as Japanese Finance Minister Kato expressed alarm over recent foreign exchange movements, particularly those driven by speculators. The yen has seen wild fluctuations over recent trading sessions, prompting official concern about currency stability. Kato's comments signal potential intervention readiness from Japanese authorities if excessive volatility persists. The minister also addressed domestic fiscal matters, noting discussions on new tax proposals and gasoline surcharge elimination, while emphasizing close monitoring of JGB market movements. Market participants are now on high alert for possible Ministry of Finance intervention, particularly if USD/JPY approaches recent highs. The pair faces immediate resistance at psychological levels, while support may emerge from intervention concerns. Traders should expect continued volatility as Japanese officials maintain verbal intervention efforts to curb speculative positioning against the yen.