Yen's Intervention-Driven Gains Tenuous at Best

The yen's recent surge has been fueled by joint intervention from Tokyo and Washington, but analysts warn that this may only be a temporary reprieve. The Japanese currency gained around 5% over the last three trading sessions, with some market sources suggesting that the US Treasury bought yen for euros instead of selling dollars.

According to Lee Hardman, senior currency analyst at MUFG, 'there will need to be a change in fundamentals as well to encourage a sustainable reversal of the yen weakening trend that has been in place over the last five years.'

The dollar index bounced from a 1-1/2-month low to 100, while investors wait for key economic data, including the US nonfarm payrolls report due on Friday.