The yen gains ground following reports of foreign exchange intervention over the May holidays.

USD/JPY slips toward 156.85 in Friday’s Asian session, pressured by renewed reports of Japanese FX intervention during the May holidays. Market attention now shifts to the US April employment report, which is expected to be the key macro driver for the session.

USD/JPY weakened to around 156.85 during Friday’s Asian session as the Japanese yen gained strength after reports of another round of FX intervention by Japanese authorities. Traders also turned cautious ahead of the upcoming US April employment data.

According to Reuters, citing a familiar source, Japanese officials reportedly intervened in the FX market during the early May holiday period, following yen-buying operations on April 30. The source noted that “the intervention since the start of May was timed to coincide with the holiday period, when market liquidity was thin.”

Expectations of further intervention may continue to support the yen and weigh on USD/JPY. Japan’s top foreign exchange official Atsushi Mimura also stated on Thursday that authorities stand ready to respond to speculative currency moves across all fronts.

Attention now shifts to the US April jobs report, due later on Friday. Markets expect around 62,000 new jobs, a notable slowdown from March’s 178,000 increase, while the unemployment rate is forecast to remain unchanged at 4.3%.