The yen has experienced heightened volatility since April 26 against major currencies as Japanese authorities intervened to stop the currency from falling.
Over the past month, the Japanese currency has witnessed significant fluctuations, with movements of 931 pips against the euro, 937 pips against the dollar, and over 1,055 pips against the Sterling.
This marks double the volatility seen in March when the yen’s fluctuations against the euro, the dollar, and the pound were 514 pips, 547 pips, and 552 pips, respectively.
However, volume in yen futures peaked on April 29th, with the dollar-yen spot price closing at 156.332. More than 487,000 contracts changed hands that day. Since the last week of April, yen futures volume has gradually declined from 487,124 contracts exchanged to 138,207 on May 8th, as the selling frenzy subdued.
However, the yen remains weak and could potentially see another intervention from Japanese authorities if the currency returns toward the 160 level. Another intervention could amplify market volatility and trading volume.
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