0808 GMT - JPY continued to benefit during the Asia session from the momentum that built up after last week's reported rate checks by financial authorities. Michael Brown, senior research strategist at Pepperstone, says market participants remain spooked by the possibility of intervention. The situation has dramatically reduced the appeal of JPY short positions, given that rate checks typically serve as a "last warning" before actual intervention takes place, he says. Brown reckons that the more time goes by without any MoF intervention, the greater the likelihood is that markets will seek to test authorities' mettle--in other words, sell JPY once more in order to discover where policymakers' pain threshold lies. (james.glynn@wsj.com; Twitter @JamesGlynnWSJ)

(END) Dow Jones Newswires

January 27, 2026 03:08 ET (08:08 GMT)

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