The yen weakens against the dollar in early trade, with the market remaining on alert for possible FX intervention. The dollar-yen pair rose to a fresh 40-year high, which is "leaving markets on watch for stronger verbal warnings or outright intervention from Japanese authorities," NAB's Taylor Nugent says in commentary. On Tuesday, Japanese Finance Minister Katayama said "the bottom line is that we stand ready to take appropriate action whenever necessary," the senior economist notes. The dollar is 0.1% higher at 162.67 yen after earlier touching 162.69 yen, the highest intraday level since 1986, according to LSEG data. (ronnie.harui@wsj.com)