Yen Holds Gains Despite Easing From Recent Highs

The yen has eased from its recent highs but still retains gains made after Tokyo and Washington coordinated an intervention in the currency markets.

Last week, Japan confirmed that it had worked with the U.S. to buy yen and sell dollars, a rare move aimed at supporting the Japanese currency.

As a result of this intervention, the yen had rallied as much as 5% over the last three trading sessions.

Despite easing slightly, the yen remains above its 40-year low of 163.99 touched in July and is still well above that level.

Axel Merk, chief investment officer at Merk Investments, said the joint action by Japan and the U.S. was likely aimed at signaling to the market not to short the yen.

Against the euro, the yen slipped 0.33% to 181.36, down from Monday's almost nine-month high of 179.435.