Yen Surges on Joint Intervention, Dollar Takes a Hit

The yen saw a significant jump on Monday, rising by 1% in Asian morning trading to reach an intraday high of 156.01 per US dollar.

This surge came after a joint intervention by Tokyo and Washington in the foreign exchange market last week, where Japan's finance ministry confirmed that the two countries had bought yen worth $58.97 billion on Thursday.

According to Elias Haddad, global head of markets strategy at BBH, 'History is clear, joint FX intervention packs a punch, and 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 kept yield differentials between Japan and the rest of the world wide.