Bank of France: Yen continues to rebound, intervention risk increased during the holidays.

After Japanese Finance Minister Taro Aso clearly signaled the possibility of intervening in the currency market to curb the recent sharp depreciation of the yen, the yen continued to strengthen. Kit Juckes, a strategist at Societe Generale, pointed out, "The current exchange rate trend is clearly deviating from observable fundamentals, combined with thin market liquidity at the year-end, providing a strong background for intervention, and the risk of Japanese authorities taking action during the holiday period is significantly increasing." He added that while the recent rise in the US dollar against the yen is noteworthy, the increase in the euro against the yen is more pronounced, further highlighting the degree of overall pressure on the yen and strengthening market expectations for intervention by the authorities.