Yen Clings to Intervention Gains Amid Speculator Caution

The Japanese yen held its intervention-driven gains on Tuesday after last week's joint action by Tokyo and Washington to shore up the currency kept speculators wary of rebuilding bearish positions.

The yen had surged as much as 5% over the last three trading sessions, with Japan confirming coordinated yen-buying intervention on Friday with the United States in a rare move.

'I expect concerns about the possibility of further intervention by Japanese and U.S. authorities to constrain downside pressure on the yen in the near term,' said Tomo Kinoshita, global market strategist for Japan at Invesco.

The dollar was nursing losses, having slid in the wake of the yen-buying intervention and on the back of falling oil prices. Investors had sold the dollar after the U.S. Federal Reserve kept rates on hold last week.