Capital.com analyst Daniela Hathorn said in a report that the yen's rebound could continue further after Japan's Finance Minister Katayama Satsuki warned that intervention would be carried out to support the yen. “While verbal statements don't change fundamentals, they can be very effective when positions are at extreme levels. “As a result, the yen's pullback is likely to continue for a few trading days,” she said. However, the USD/JPY exchange rate is likely to remain volatile, and Tokyo's December inflation data will be released on Thursday, especially if these data reinforce concerns that the Bank of Japan's rate hike lags behind rising price pressures. The US dollar fell 0.2% to 155.94 yen, above the chart support level of 154.40 yen. Hathorn said the authorities' pain point seemed to be 158.00 yen.

Capital.com analyst Daniela Hathorn said in a report that the yen's rebound could continue further after Japan's Finance Minister Katayama Satsuki warned that intervention would be carried out to support the yen. “While verbal statements don't change fundamentals, they can be very effective when positions are at extreme levels. “As a result, the yen's pullback is likely to continue for a few trading days,” she said. However, the USD/JPY exchange rate is likely to remain volatile, and Tokyo's December inflation data will be released on Thursday, especially if these data reinforce concerns that the Bank of Japan's rate hike lags behind rising price pressures. The US dollar fell 0.2% to 155.94 yen, above the chart support level of 154.40 yen. Hathorn said the authorities' pain point seemed to be 158.00 yen.