Yen Slips Back After Briefly Touching 158.37 as Tokyo Interventions Loom

The Japanese yen touched 158.37 against the US dollar on Thursday as Tokyo markets reopened after a three-day holiday, but it quickly slipped back to 157.88.

The Ministry of Finance has spent a record ¥15.4 trillion defending the currency since late July, and experts say a rate gap of over 250 basis points between Japan's 1.25% interest rate and the Fed's target range makes any intervention unlikely to stick.

Despite this, many believe Tokyo will intervene again if USD/JPY pushes into the 159-160 zone during Tokyo hours, which could drag AUD/JPY down towards 110.00.