The yen continued to strengthen after Japan's finance minister, Katayama Satsuki, clearly signalled that it might interfere in the foreign exchange market to contain the recent sharp depreciation of the yen. Kit Juckes, strategist at Société Générale, pointed out, “The current exchange rate trend clearly deviates from observable fundamentals, compounded by declining market liquidity at the end of the year, forming a strong background for intervention. The risk of action by the Japanese authorities during the holiday season has increased significantly.” He added that while the recent rise in USD/JPY is remarkable, the increase in EUR/JPY is more prominent, further highlighting the extent of the overall pressure on the yen and strengthening the market's expectations for intervention by the authorities.

The yen continued to strengthen after Japan's finance minister, Katayama Satsuki, clearly signalled that it might interfere in the foreign exchange market to contain the recent sharp depreciation of the yen. Kit Juckes, strategist at Société Générale, pointed out, “The current exchange rate trend clearly deviates from observable fundamentals, compounded by declining market liquidity at the end of the year, forming a strong background for intervention. The risk of action by the Japanese authorities during the holiday season has increased significantly.” He added that while the recent rise in USD/JPY is remarkable, the increase in EUR/JPY is more prominent, further highlighting the extent of the overall pressure on the yen and strengthening the market's expectations for intervention by the authorities.