Yen Soars After Joint Intervention from Tokyo and Washington

The yen surged on Monday after joint intervention from Tokyo and Washington, leaving investors on high alert for further action to support Japan's historically weak currency.

The Japanese currency rose 1% in Asian morning trade to an intraday high of 156.01 per US dollar, following a more than 3% surge over two trading sessions last week.

Japan's finance ministry confirmed joint yen-buying intervention on Friday, while Bank of Japan data showed the country may have bought as much as $58.97 billion worth of yen on Thursday.

Elias Haddad, global head of markets strategy at BBH, noted that 'history is clear' on the effectiveness of joint FX intervention and that investors should 'lean with the official flow, not against it.'

The yen has been under pressure for years due to the BOJ's gradual approach to monetary policy tightening, which has kept yield differentials between Japan and the rest of the world wide.