USD/JPY Plunges on Suspected Japan Intervention Ahead of US NFP

USD/JPY experienced a sharp decline during the Asia-to-Europe session handover, with the Japanese yen surging suddenly on what market participants suspect was direct intervention by Japanese authorities. Japan's Ministry of Finance declined to comment on the sudden yen spike, while Reuters sources indicated that Japan has shifted to "ambush tactics" against yen speculators, catching short-yen positions off guard and triggering a wave of position unwinding. The broader dollar remained under pressure heading into the highly anticipated US Non-Farm Payrolls report, with US futures trading cautiously as traders assessed the distribution of forecasts for the employment data. Separately, Swiss inflation data held steady, providing a stable backdrop for CHF crosses. The combination of suspected intervention and pre-NFP positioning has created heightened volatility across yen pairs. Traders should exercise caution as the NFP release could amplify or reverse current moves. A weaker-than-expected jobs print would likely compound dollar weakness, while a strong report could trigger a partial USD/JPY recovery depending on intervention risk appetite from Tokyo.