Japanese Yen softens, traders watch further US-Japan joint currency intervention

The USD/JPY pair recovers some lost ground to near 157.65, snapping the three-day losing streak during the early Asian trading hours on Monday. Traders remain on high for further intervention from the US and Japan after coordinated operations in Tokyo and New York last week triggered a dramatic rebound in the currency.

Bloomberg reported that Japan’s Finance Ministry and US Treasury Secretary Scott Bessent are now working together to a degree unseen in decades to shore up the currency. Bessent said that the US wouldn’t hesitate to step into the market again. Meanwhile, Japan confirmed the first joint intervention with the US in currency markets in 15 years, according to a statement by Finance Minister Satsuki Katayama.

On the other hand, uncertainty in the Middle East could boost the US Dollar (USD) against the Japanese Yen (JPY). US President Donald Trump cancelled planned military strikes against Iran based on “rapidly” reaching a deal on its nuclear programme and the full reopening of the Strait of Hormuz.

Nonetheless, Iran’s Mehr news agency reported that Iranian officials said that Trump’s claim that Tehran had requested a pause “was nothing but a new lie” and that the Iranian armed forces were “on high and ready for any eventuality.”