Currency trader are on high alert for intervention risk ahead of Bank of Japan decision, with 「Silver Week」 seen as a potential trigger.

BlockBeats News, September 3rd – With the Bank of Japan's decision imminent, yen traders are on high alert for a potential intervention in the currency market by Japanese authorities. Following the announcement of the Bank of Japan's decision, a three-day holiday will immediately follow, leading market participants to believe that authorities may take action during this period of lower liquidity. The yen continued its rally on Thursday, highlighting the market's nervousness ahead of the Bank of Japan's policy meeting on September 18th, with the current market consensus expecting a rate hike at this meeting.

In April this year, Japanese authorities intervened for the first time since 2024 during a long Japanese holiday. Now, investors speculate that Japan may employ a similar strategy during the "Silver Week" holiday period shortly after the conclusion of the Bank of Japan's policy meeting. Sumara Hamoud, a strategist at the Commonwealth Bank of Australia, said, "The 'Silver Week' may further increase uncertainty in the yen's trajectory, mainly due to the potential further decline in market liquidity during the holiday period. Over time, the USD/JPY exchange rate may once again test the highs that triggered the intervention before. If this situation unfolds rapidly, especially around the Bank of Japan's meeting, the risk of further intervention will significantly increase."