Yen Holds Gains as Japan and US Signal No Short-Selling

The yen held onto most of its gains from last week's coordinated intervention by Tokyo and Washington after the Japanese currency had rallied as much as 5% over the last three trading sessions.

Last Friday, Japan confirmed a rare joint action with the U.S. to buy yen for euros, signaling to the market not to short the yen, according to Axel Merk, chief investment officer at Merk Investments.

The yen was down 0.38% on Tuesday at 157.79 per dollar, but remained above its three-month low of 155.20 and 40-year low of 163.99 touched in July.