The yen rose on Thursday in Asian trade against a basket of major rivals, moving in a positive zone for the first time in three days and trying to rebound from 38-year lows.

The gains come after the Japanese government issued another warning against the sharp decline of the local currency, after it fell below the 160 barrier once again and hit 1986 lows.

However, yens gains are stymied by the pressure of increasing US 10-year treasury yields ahead of important US growth and unemployment claims data.

The Price

The USD/JPY pair fell 0.25% today to 160.38 yen per dollar, with a session-high at 160.79, after losing 0.7% on Wednesday against the dollar, marking 38-year lows at 160.87.

The loss comes after the pair gave up the psychological level of 160, which was considered a red line by the Bank of Japan.

The yen lost 2% against the dollar since the June 14 policy meeting by the BOJ, at which it maintained its government bonds purchases scheme unchanged despite market expectations of a cut.

New Warning

Japans finance minister Shinuchi Suzuki issued another warning that authorities will take necessary measures in the forex market after yen hit a 38-year low against the dollar.

He said that the government aims to stabilize the exchange rate, and is concerned about the impact of volatility on the economy.

Will the BOJ Intervene Once More?

Data by the Japanese financial ministry showed authorities spent 9.79 trillion yen ($62.23 billion) to intervene in the forex market and support the yen.

The data confirmed the doubts that the Bank of Japan intervened in a two-stage process last month, selling up massive amounts of dollars in order to prop up the yen and snatch back from a 34-year low at 160.21.

Its now a question whether the BOJ will intervene once more after the yen reached a new low of 160.78, the worst since 1986.

US Yields

US 10-year treasury yields rose 0.4% on Thursday, extending gains for the third session and hitting a two-week high at 4.347%, underpinning the greenback.

The developments came ahead of important US growth, unemployment claims data later this week.

Current pricing for a Fed 0.25% interest rate cut in September stands at 62%, and at 75% for November.