This week's sharp rebound in the yen suggests the currency's steep downtrend that began in November on the back of calls for aggressive monetary easing in Japan may well be over as uncertainty and fear return to the market, a strategist told CNBC.
Political deadlock in Italy, following inconclusive elections this week, has sparked fears of a fresh crisis in the euro zone and has sent investors scurrying out of risk assets and into safe havens such as the yen.
Japan's currency, which on Monday traded at its weakest level since May 2010 at about 94.76 per U.S. dollar, has strengthened almost 3 percent from there. Its move against the euro has been even more pronounced, with the yen strengthening more than 4 percent in the hours following the Italian election results which emerged Tuesday.
(Read More: Sharp Yen Rebound a Challenge to 'Abenomics')
"Barring natural disasters, I have not seen an ugly move like that in about four-to-five years in dollar/yen," Ed Ponsi, managing director at Barchetta Capital Management told CNBC Asia's "Squawk Box" on Wednesday.