The Japanese yen leapt more than 2.5 percent against the dollar on Friday, snapping at a low of over ¥160 before rebounding near ¥155.50. Finance minister Satsuki Katayama warned that decisive action was imminent, sparking speculation that Tokyo stepped into the market after a sudden slide that rattled traders and prompted a swift rally in the overnight session.

Nikkei reported that Tokyo had intervened, citing government sources, while Atsushi Mimura, the chief currency diplomat, said he was in constant touch with Washington. His remarks implied that the United States had green‑lit Japan to act directly in the FX market if needed, a rare U.S.‑Japan coordination to support the yen amid widening fears of a prolonged slide.

With the Golden Week holiday beginning today, Katayama urged residents to keep smartphones close, hinting that intervention could occur in overseas markets while domestic trading remains closed. The move underscores Japan’s willingness to defend the yen during a period of heightened volatility, potentially boosting investor confidence for Asian equity markets.

The intervention signals a broader shift in Japan’s monetary stance as it balances the need to curb inflation with the desire to keep the yen from weakening further. Analysts warn that continued support could strain Japan’s foreign exchange reserves and prompt other central banks to reassess their own currency strategies amid global market uncertainties.