Traders Brace for Yen Swings as Holiday Intervention Risk Looms

Options traders are increasing hedging costs for yen positions ahead of thin US holiday trading. Japanese authorities have a history of intervening to support the yen, and traders are pricing in the possibility of intervention during a period when trading volumes are typically lower. The yen has faced pressure in recent sessions, and reduced market liquidity during US holidays can amplify price swings in currency markets.

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