Forex
Home›Forex›Major Pairs›Yen rises for third straight day as traders watch for…
Yen rises for third straight day as traders watch for intervention
The yen was last around 155.20 per dollar in the Asian morning, after Japan data indicated Tokyo may have bought up to $58.97 billion of yen on Thursday.
The Japanese yen extended gains for a third straight session against both the euro and the U.S. dollar on Monday, keeping traders alert for the possibility of additional government intervention after Japan and the United States acted last week to support the currency, according to Reuters.
Japan's finance ministry said it would not hesitate to take further action, and the yen also climbed against other currencies such as sterling. Traders largely focused on intervention risk after Tokyo and Washington conducted coordinated yen buying.
Reuters reported that the yen rose 1.0% in Asian morning trade, reaching 155.20 per dollar, its strongest level in about three months before giving back some gains. It was last up 0.39% at 156.76, while the 200-day moving average near 158 is expected to act as resistance, Rabobank strategist Jane Foley said.
The report also pointed to continued pressure on the currency from wide yield differentials tied to the Bank of Japan's gradual approach to tightening. Reuters cited Bank of Japan data suggesting Tokyo may have bought as much as $58.97 billion worth of yen on Thursday, while another strategist at Societe Generale said dollar-yen moves far from long-term trend levels tend to signal when intervention risk enters a danger zone.