Yen traders wary of intervention risk during "Golden Week" holidays as markets tense ahead of Bank of Japan meeting

(1) As the Bank of Japan's policy meeting on September 18 approaches, the market widely expects a rate hike; the yen has strengthened for two consecutive days, reflecting high investor caution over potential exchange rate interventions around the time of the decision. (2) Earlier in April this year, Japanese authorities chose to carry out the first intervention of the year during a long holiday period; current market speculation suggests authorities may again utilize the upcoming "Silver Week" holiday (a period of lower liquidity) shortly after the meeting for similar action to enhance intervention effectiveness. (3) Commonwealth Bank of Australia strategist Hamood warned that "Silver Week" will further reduce market liquidity and increase uncertainty in yen movements; if USD/JPY quickly returns to the previous high that triggered intervention—especially if similar pressure emerges before or after the meeting—the risk of further intervention will increase significantly.