The Japanese yen continued its losses against major counterparts on Monday as speculation over another G-7 coordinated move to sell yen to cap its gains gained momentum.

The greenback gained 0.6 percent to 81.10 yen from late US trade on Friday, while the euro rose 0.5 percent to 114.93 yen.

Dollar/yen will be supported in the near term with the market wary of more intervention, Reuters reported, quoting Hans-Guenter Redeker, chief fx strategist at BNP Paribas.

The central banks have drawn a line in the sand, and I think it has made a psychological impact on the markets, which are unlikely to take dollar/yen down to 76.25 yen again in the short term,” Redeker added.

The Japanese yen tumbled to the lowest level in two years against the US dollar on Friday, as G-7 nations promised that they will jointly intervene in currency markets to help Japan’s recovery from the disastrous earthquake and tsunami.

Analysts said the G-7 joint intervention, its first since 2000, was mainly targeted at reducing market volatility.

The G-7 announcement came a day after the yen surged to all-time high of 76.53 against the US dollar on last Thursday. The G-7 officials said that the United States, the United Kingdom, Canada, and the European Central Bank will join Japan in concerted intervention in exchange markets from Friday.

Traders estimate that the Bank of Japan, the European Central Bank and the Bank of Canada would have sold $32.3 billion worth of yen on Friday.

Traders also expect the Bank of Japan to intervene again if the USD/JPY falls below 80, continuing its efforts to stabilize the markets.

Also, the yen declined against the Australian dollar, with the pair AUS/JPY gaining nearly 1 percent to 81.37.