Yen Rises for Third Straight Session Amid Ongoing Intervention
The Japanese yen strengthened for its third consecutive session against major currencies on Monday, with traders anticipating further intervention by Tokyo and Washington to support the currency. The yen rose 1% in Asian morning trading to a high of 155.20 per dollar, its strongest level in about three months.
According to Societe Generale's Stephen Spratt, the dollar/yen exchange rate has moved 1.5-2 standard deviations above its long-term trend, signaling increased intervention risk. The current level is around 162.72-164.96, he noted.
The Bank of Japan data showed that Tokyo may have purchased as much as $58.97 billion worth of yen on Thursday, further pressuring the currency. Barclays analysts argue that even if the yen strengthens in the near term, longer-term downward pressures remain in place.