Yen remains vulnerable as Japan enters holiday amid Bank of Japan rate disappointment

The Japanese yen is vulnerable to declines with a three-day holiday reducing trading liquidity following market disappointment over the Bank of Japan's rate hike guidance.

The currency slumped 1.3% against the dollar on Friday, closing the week down over 2% at 156.88 amid two board member dissents.

Thinner holiday liquidity heightens the risk of official currency intervention by Japanese authorities to prevent further weakness.