The Japanese yen traded near 161 per dollar on Friday after jumping nearly 1% in the previous session, as Finance Minister Satsuki Katayama reiterated that authorities stand ready to intervene at any time to support the currency.
Her comments came amid growing speculation over another round of intervention, with thin liquidity during the US holiday weekend seen as creating favorable conditions for official action.
Katayama also said Japan and the US remain in close communication on foreign exchange policy.
On Thursday, the yen rebounded sharply from 40-year lows after reports suggested Japan may stop signaling intervention plans in advance, catching traders off guard and helping unwind speculative positions against the currency.
The yen also drew support from a weaker dollar after softer-than-expected US jobs data prompted traders to reduce expectations for Federal Reserve rate hikes this year.