The Japanese yen rose in the Asian market on Tuesday against a basket of global currencies, to begin to recover from its lowest level in nine months against the US dollar, about to achieve its first gain in the last four days, thanks to the activity of purchases from low levels.

This rise in the levels of the Japanese currency comes at a time when traders are watching for any signs of possible intervention from the Japanese authorities to support the local currency, while some analysts rule out intervention before a decline to levels below 150 yen.

Japanese yen exchange rate today

The dollar declined against the yen by about 0.2%, to (146.30 yen), from today's opening price at (146.53 yen), and recorded the highest level at (146.55 yen).

When prices settled on Monday, the Japanese yen lost 0.1% against the US dollar, its third consecutive daily loss, and hit a nine-month low of 146.75 yen per dollar.

These losses are attributed to the comments of the directors of the Bank of Japan and the Central Bank of America at the Jackson Hole Forum, which renewed concerns about the widening of the current interest rate gap between Japan and the United States.

intervention of the Japanese authorities

Traders are watching for any signs of possible intervention from the Japanese authorities to support the local currency, especially after it fell to a nine-month low against the US dollar.

The Japanese yen traded for a very short period on June 30, below 145 yen per US dollar for the first time in seven months, before entering a strong upward wave, in a sign of the intervention of the Japanese authorities to support the currency.

The rally followed Japanese Finance Minister Shunichi Suzuki's remarks that Japan will take appropriate steps in response to the excessive weakness of the yen, in the latest comment from Japanese authorities to support the local currency.

Therefore, whenever the yen loses trading below the barrier of 145 yen per US dollar, speculation begins to increase that Tokyo will soon enter the exchange market to support its currency.

And the Japanese yen is down more than 11% against the US dollar since the beginning of this year, on its way to incurring a third consecutive annual loss, due to low yields in Japan, which made the yen an easy target for short sellers and financing transactions.

Expectations

Market strategist at Saxo Bank Charo Chanan said if US data, and therefore Treasury yields, continue to be strong, we may see increasing pressure on the Japanese yen.

Chanan added that the threat of intervention by authorities has fallen to levels below 150, given the lack of any currency-related comments from Kazuo Ueda at the Jackson Hole conference, and no signs of verbal intervention so far from Japanese government officials.