The Japanese yen extended gains up to 1.2% against the dollar, reaching a level of 153.81 per dollar, driven by market fears of potential intervention by Japanese authorities amid recent volatility and bond market turmoil. Prime Minister Sanae Takaichi warned that Japan is prepared to act against speculative currency moves, and reports suggest that the US Federal Reserve has conducted 'rate checks,' indicating possible coordinated intervention with Japan. The yen's sharp rally has been the largest since April of the previous year, with traders closely watching for actual market intervention, which could involve Japan and the US stepping into the currency markets, reminiscent of the 1985 Plaza Accord. Despite verbal warnings, no official intervention has occurred yet, but market sentiment remains cautious, with the USD/JPY pair falling to a low of 103.30 before rebounding slightly. Analysts believe that intervention alone may not sustain long-term changes in the currency trend, especially with Japan's negative interest rates and upcoming elections adding pressure. The market's focus is on whether Japan and the US will follow through with actual action, which could impact bond yields and currency stability.