Investors question the sustainability of the yen’s recent rally despite joint US-Japan intervention to curb volatility.
The Japanese yen retreated to 157.70 against the US dollar in European trading, erasing earlier gains as caution grows over its recent strength. The move follows joint intervention by US and Japanese authorities to address excessive yen volatility, though analysts view the impact as temporary.
Market experts argue the yen’s rebound lacks fundamental support, with MUFG analysts noting intervention efforts are likely modest in scale. They emphasize that sustained yen appreciation requires shifts in economic fundamentals, not just short-term measures. The currency’s weakening trend has persisted for five years.
Focus now turns to upcoming US private employment data, which could influence Federal Reserve policy expectations and further dollar-yen dynamics.