Japan Intervention Would Target Five-Yen Rally, Strategists Say.

Japanese authorities are considering intervening in foreign exchange markets to target a five-yen rally against the dollar, according to strategists at major brokerages. The yen has reached its weakest level against the dollar in 34 years, prompting concerns. However, skepticism remains about the effectiveness of intervention in keeping the yen strong, given the wide yield gap between US and Japanese bonds. Japan's Finance Ministry may need to prop up the yen if it continues to weaken. [Extracted from the article]