The dollar shot up more than two yen on Friday to its highest level in almost a month after what appeared to be massive intervention by the Japanese authorities.
However, the dollar's strength was fleeting, and it quickly lost half of its gains.
Traders suspected that Japan's support was a continuation of intervention earlier in the week, when it was seen spending about three trillion yen ($28.25 billion) on Monday and Tuesday.
"If that's the case, the intervention (on Friday) must have been massive it's hard to tell if they put in 1 trillion, but I wouldn't be surprised if it was over 500 billion," said Naomi Fink, senior currency analyst at BNP Paribas.
The jolt sent the greenback - recently weighed down by concerns over a bulging US current account deficit - soaring to 108.30 yen, its highest level since December 15, from the day's low of 106.18.
Japan's Ministry of Finance (MoF) declined comment on whether the Bank of Japan had intervened.
The dollar had dropped back to 107.05 yen, suggesting that the effect of any intervention would continue to be short-lived. Still, that figure was almost a full yen above the day's low.
Traders said the BOJ initially stepped in to buy dollars at around 106.20 yen and intervened again in heavy amounts after resistance at around 106.50 yen was cleared.
Bankers said they then saw stop-loss buying by foreign operators and traders in Tokyo, which drove the dollar up to 108.30 yen, before exporters and Japanese life insurance companies stepped in to sell the greenback.
The euro was pulled up against the yen by the dollar's sudden vigour, hitting 137.70 yen, a level not seen since July 29, 2003. It subsequently fell back to around 136.25 yen. The single currency was slightly weaker against the dollar, trading at $1.2730 versus $1.2756 in late New York.
Traders said US employment figures and an upcoming Japanese public holiday on Monday compounded the effects of the BoJ support.
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