USD/JPY Holds Near Four-Decade Low as Intervention Fears Cap Yen

The Japanese yen is hovering near its lowest level in nearly four decades, with USD/JPY oscillating between small gains and losses during the Asian session on Monday. The pair is currently trading just below the mid-162.00 level.

Market participants remain cautious due to the rising risk of currency intervention by Japanese authorities. Thin liquidity, attributed to a holiday in several markets, is amplifying the cautious tone and limiting directional moves.

Traders are monitoring any verbal or official steps from Tokyo that could trigger a sharp reversal in the yen's slide.