Yen Gains Strength as Japan and US Conduct Rare Joint Intervention

The Japanese Yen has been gaining strength against the US Dollar after a rare joint intervention between Japan and the US last week. The USD/JPY pair edged lower to around 157.40 during early Asian trading hours on Tuesday, as traders remained cautious of further intervention.

Japan's Finance Ministry confirmed that Tokyo and Washington conducted coordinated yen-buying intervention, with Japan likely using about $34 billion in currency market intervention last Friday. The US Treasury Secretary stated that the US would not hesitate to step into the market again, while President Donald Trump described the intervention as a 'signal of friendship.'

Bank of America analyst Shusuke Yamada noted that foreign exchange intervention can have a significant influence on the market and trigger an inflection. However, stronger-than-expected outcomes from Friday's US July jobs data could reinforce bets on a Federal Reserve September rate hike and support the Greenback.