USDJPY: Japanese Yen reverses some gains, USDJPY rises

The Japanese yen USDJPY rose 0.6% on Monday, although trading volumes in the currency were limited due to a market holiday in Japan.

The rate is inversely linked to the strength of the yen, which has fallen sharply from a 34-year high of more than 160 yen last week amid signs of repeated government intervention in currency markets.

But given that the fundamentals behind the yen's weakness - primarily the wide gap between US and domestic interest rates - remain, the yen's decline continues.