Yen's Strong Surge Leaves Traders Bracing for Possible Intervention

The Japanese yen experienced a significant surge on Monday, rising by 1% in the Asian morning to a high of 155.20 per dollar.

This marks its strongest level in about three months and has left traders anticipating potential further intervention from authorities to support Japan's historically weak currency.

The joint yen-buying intervention between Tokyo and Washington last week, which saw up to $58.97 billion worth of yen purchased by the Bank of Japan on Thursday, appears to have had a lasting impact.

Hirofumi Suzuki, SMBC's chief FX strategist, noted that 'given the magnitude of the move in USD/JPY and its timing, the possibility of intervention cannot be ruled out.'