The yen jumped on Friday after Japan's finance minister Katayama called for pension funds to increase domestic asset allocations, briefly reversing the currency's decline. USD/JPY fell about 0.7% to 161.29. Investors remain skeptical the gain will stick, citing lingering geopolitical risk, fiscal concerns and interest-rate differentials; without follow-up measures the yen could resume weakness toward new 40-year lows. Official intervention risk persists, but markets are broadly doubtful the gove

The yen jumped on Friday after Japan's finance minister Katayama called for pension funds to increase domestic asset allocations, briefly reversing the currency's decline. USD/JPY fell about 0.7% to 161.29. Investors remain skeptical the gain will stick, citing lingering geopolitical risk, fiscal concerns and interest-rate differentials; without follow-up measures the yen could resume weakness toward new 40-year lows. Official intervention risk persists, but markets are broadly doubtful the government's previous record yen-buying operations were effective. State Street's Tokyo manager Wakabayashi Bart said: "This may change the market narrative, but it is only an immediate reaction; further yen strength will require more commitments."