Euro Clings to Gains Against Yen as Investors Seek US-Japan Intervention Clarity

The Euro has held onto its two-day gains against the Japanese Yen, but investors remain uncertain about whether US-Japan intervention plans will be implemented again. The EUR/JPY cross is currently trading around 182.25 during the European session on Thursday.

Last week, Japan's Ministry of Finance confirmed a joint intervention with the United States to counter excessive volatility in the Japanese yen. Japan's Finance Minister Satsuki Katayama also stated that Japan 'won't hesitate' to carry out more forex intervention with the US.

Market experts believe that the recent strength in the Yen won't last unless there is another joint intervention. Commerzbank notes that USD/JPY has already surrendered part of its gains since the historic intervention, and while it was impressive in terms of scale, they doubt it will trigger a sustained appreciation of the Yen.

The bank highlights comments from Treasury Secretary Scott Bessent, who suggested that the US would be willing to act again if necessary. However, investors will need convincing that such support will be both credible and enduring.