Yen's Tipping Point: Joint Intervention Threat Cuts Selling Pressure

The Japanese yen's prolonged depreciation may be nearing its limit as MUFG analysts warn of a growing threat of joint intervention by Japanese authorities.

According to a note released this week, the risk of coordinated action - likely with the U.S. Treasury - has become a key factor in the currency market, prompting traders to reconsider aggressive short positions on the yen.

The bank notes that Japan's Ministry of Finance has repeatedly signaled its discomfort with the yen's rapid decline, which has pushed the currency to levels not seen in decades.