Japan's finance minister Katayama said the principles behind the July US-Japan joint FX intervention remain in effect, signaling the government is prepared to act again with the United States if needed. The remarks helped the yen end a four-day losing streak. Last week's Bank of Japan rate hike to a 31-year high has not convinced investors the central bank will accelerate tightening, leaving sentiment fragile. HSBC senior FX strategist Daragh Maher said the yen may struggle in coming weeks but t

Japan's finance minister Katayama said the principles behind the July US-Japan joint FX intervention remain in effect, signaling the government is prepared to act again with the United States if needed. The remarks helped the yen end a four-day losing streak. Last week's Bank of Japan rate hike to a 31-year high has not convinced investors the central bank will accelerate tightening, leaving sentiment fragile. HSBC senior FX strategist Daragh Maher said the yen may struggle in coming weeks but the persistent threat of intervention should help limit USD/JPY upside. He added that early-September's yen spike has reversed and, with positions less extreme, another large short-covering squeeze is unlikely.