The yen weakened again on Tuesday as it trades near its weakest level in four decades. Hedge funds have turned the most negative on the currency since 2007, emboldening traders to push the value lower.
While the risk of a surprise yen-buying move by Tokyo has kept losses in check, there has been no sign of intervention by Japanese authorities. Officials are saying less than they did before to defend the yen, and when they do speak, they opt for vague and relatively weak statements.
A former top foreign exchange official in Japan has pushed back against speculations that the currency might continue its slide, stating that the yen should be as much as 20% stronger, around 130 per dollar. However, concerns remain that there will come a point when markets will just ignore intervention.