The Nikkei 225 stock average closed 0.3% higher at 63,957.53 points, with semiconductor and heavy industry stocks leading the market rally.

A former Bank of Japan official, Atsushi Takeuchi, who was involved in Tokyo's foreign exchange intervention operations over a decade ago, stated that if the yen shows signs of weakening again, Japan and the United States would "definitely" take coordinated intervention action once more. Takeuchi noted that the recent joint U.S.-Japan intervention was highly effective, fostering a market consensus that the yen will not continue to depreciate unilaterally.

"It is now clear that, with U.S. support, there is virtually nothing preventing Japanese authorities from intervening," he said. "The U.S. standing behind Japan and taking action carries enormous symbolic significance," Takeuchi remarked in a Reuters interview on Tuesday. "If I were managing a hedge fund, I would not consider betting on the dollar-yen pair now."

He indicated that the yen against the dollar could fluctuate within a 155 to 162 range in the short term. "If the yen can remain above the 160-yen level for about another week, the market will view that level as a short-term bottom and begin pushing the yen higher."

"If there are signs of the yen weakening, Japan and the United States will definitely intervene again," said Takeuchi, who remains in contact with current policymakers.