The Japanese yen approaches a 40-year low, and Kakuki Katayama issues a warning of strong intervention again.

As the Japanese yen exchange rate lingers near a nearly 40-year low, Japan's Finance Minister Kaori Hayama stated that the government can take strong measures to counter speculative activities. Hayama said at a press conference on Friday, "We can take strong action against excessive speculation in the foreign exchange market." When asked about the yen falling again to the levels seen during the May Golden Week period, she did not make any specific comments; the market generally believed that Japan intervened to support the yen at that time. Hayama has previously mentioned "strong action" several times, which refers to intervention in the foreign exchange market and is usually seen as the final warning to traders. She stated that the finance ministry's position on exchange rates has not changed. At the time of this statement, the USD/JPY exchange rate was around 161.17, lower than the level when the Japanese authorities intervened to support the yen at the end of April. The next key level for the yen is 161.95, and if it breaks below that level, the exchange rate will hit its lowest level since December 1986. The yen has been weakening in recent days due to the overall strength of the US dollar. The market is betting that the Federal Reserve will restart interest rate hikes in the coming months, driving the US dollar to its largest two-day gain in three months.