By forex calendar in Bank Holiday —

JPY Bank Holiday, Nov 24, 2025

Bank Holiday Alert: JPY Market Set for Low Liquidity and Volatility on November 24, 2025

Tokyo, Japan – November 24, 2025 – Traders and investors focused on the Japanese Yen (JPY) should be aware of a significant event impacting market liquidity and volatility today. A Bank Holiday is in effect across Japan, leading to the closure of financial institutions. This latest data, officially released today, November 24, 2025, signifies a period of reduced trading activity and potentially amplified price swings in the foreign exchange market.

The title, "Bank Holiday," might seem straightforward, but its implications for JPY traders are substantial. While the actual impact of this specific holiday is categorized as "Non-Economic," meaning it doesn't directly stem from economic data releases, its effect on market mechanics is undeniable. The previous record for this event is not available, but the usual effect is well-documented: Low liquidity and irregular volatility.

Understanding the Impact: Why JPY Traders Care About Bank Holidays

The reason why traders pay close attention to Bank Holidays, especially in major economies like Japan, boils down to the fundamental nature of foreign exchange markets. Banks facilitate the majority of foreign exchange volume. They are the primary participants in executing large-scale currency transactions, from international trade settlements to interbank lending.

When these key players are absent from the market due to a holiday, the overall trading volume plummets. This decrease in liquidity has a direct and significant impact on market behavior. In a less liquid environment, the influence of smaller participants and speculative traders becomes more pronounced.

This shift in market dominance can lead to a dual effect on volatility:

  • Abnormally Low Volatility: In some instances, with fewer large orders being placed and a general lack of directional momentum, price movements can become sluggish. This might be observed in periods where there's no immediate catalyst to drive the market, and activity dwindles.
  • Abnormally High Volatility: Conversely, even small orders can have a disproportionately larger impact on prices when liquidity is low. News events, unexpected announcements, or even algorithmic trading strategies can trigger sharper and more rapid price fluctuations than would typically occur in a liquid market. This is because there are fewer opposing orders available to absorb the impact of a trade.

The description accompanying this Bank Holiday highlights that "Japanese banks will be closed in observance of Labor Thanksgiving Day." While this is a cultural and national observance, its timing within the financial calendar creates these market dynamics.

It's important for traders to understand that while Japanese banks are closed, the foreign exchange market doesn't completely shut down. Most Forex brokers remain open for every holiday except Christmas and New Year's Day. This means that JPY trading is still possible, but the underlying market conditions will be different.

However, it's crucial to distinguish between the forex market and other financial markets. Stock markets and banks have slightly different holiday schedules. This can lead to situations where one market is active while another is closed, potentially creating opportunities or risks depending on cross-asset correlations.

For the JPY, the immediate aftermath of today's Bank Holiday is expected to be characterized by the aforementioned low liquidity and irregular volatility. Traders will need to exercise caution, employ tighter risk management strategies, and potentially adjust their trading horizons. Expect price action to be less predictable and potentially more erratic.

Looking ahead, the next release related to this JPY Bank Holiday is scheduled for December 30, 2025. This upcoming date will likely signal the return of normal trading conditions as Japanese financial institutions reopen their doors. Until then, the focus remains on navigating the reduced liquidity and heightened volatility associated with today's observance.

In summary, the Bank Holiday impacting the JPY on November 24, 2025, is a critical event for foreign exchange participants. It underscores the vital role banks play in market liquidity and the subsequent impact on price volatility. By understanding these dynamics and preparing for periods of reduced activity, traders can better protect their positions and potentially identify unique trading opportunities that arise during such times.