CoinWorld news: On Friday, the Japanese yen suddenly rebounded, and the market turned its focus to whether the Japanese government can deliver on its promise to bring its massive pension reserves back for domestic investment. However, some investors are skeptical about the sustainability of the yen’s uptrend, as geopolitical risks, fiscal concerns, and pressure from interest-rate differentials remain. If there is no follow-up action, the yen could fall to a new 40-year low. Although the risk of official intervention still exists, the market generally doubts the effectiveness of the government’s previous record yen-buying operations. After Japan’s Finance Minister Kōzuki Katayama called for pension funds to increase their allocation to domestic assets, the yen against the U.S. dollar briefly rose 0.7% to 161.29, temporarily reversing the depreciation trend. Naoki Wakabayashi, the manager of the Tokyo branch of the State Street Bank, said: “This could change the market narrative, but for now it’s only an immediate reaction; further strengthening of the yen will require more commitments to support it.”