The volatility of the Japanese yen should return to the center of attention, with the market assessing the risk of the first joint currency intervention between the US and Japan in 15 years, still without clarity on when or how the authorities may act.
After extreme peaks on Friday, the movement on Monday was much more orderly. The yen hit a four-month high of 153.81 per dollar, after touching 159.23 at the recent low. The reading is clear: investors reduced short exposure to avoid being caught on the wrong side of a potential intervention.