Yen Strengthens on Intervention Fears, Markets Eye Tokyo CPI Data

The Japanese Yen (JPY) has strengthened against its major currency peers in the European trade on Monday, with the EUR/JPY pair declining 0.4% to near 178.40.

This appreciation is largely driven by verbal warnings of Japan's intervention to support the currency, which market participants are taking at face value.

Atsushi Mimura, Japan's top currency diplomat, said that markets should take at face value the 'very clear' message Tokyo and Washington delivered last week on the Yen, signaling his resolve to act against excessive falls in the currency.

The economic data front is also expected to influence market sentiment, with investors awaiting the Tokyo Consumer Price Index (CPI) data for September, which will be published on Friday.