Japanese Yen Trades Cautiously Amid Intervention Risk

The Japanese Yen traded cautiously on Monday as traders weighed the risk of intervention against bets for further Federal Reserve rate hikes.

USD/JPY was little changed around 157.25, with the US Dollar holding steady near recent highs amid Middle East developments and expectations of Fed tightening.

Atsushi Mimura, Japan's top currency diplomat, renewed warnings about the Yen's weakness, saying markets should take 'at face value' Tokyo's message to intervene if necessary.

Mimura declined to comment on whether intervention would occur again, but noted that Japan has no concerns about its ability to fund further action in the currency market.