Guarded Blocks And Threads

I'm reading the following section of the Oracle docs:

Guarded Blocks (The Java Tutorials > Essential Classes > Concurrency)

We have multiple threads. One of them sets the joy flag to true. The other waits until joy flag is set to true in order to print to the output stream. Rather than squander processer resources with a while loop, we choose to use the wait method of Object which suspends execution of thread. When the other thread throws an exception, we check the loop condition again.

Java Code:

public synchronized void guardedJoy() {
// This guard only loops once for each special event, which may not
// be the event we're waiting for.
while(!joy) {
try {
wait();
} catch (InterruptedException e) {}
}
System.out.println("Joy and efficiency have been achieved!");
} mh_sh_highlight_all('java');

The documentation goes on to state the following:

When a thread invokes d.wait, it must own the intrinsic lock for d - otherwise an error is thrown. Invoking wait inside a synchronized method is a simple way to acquire the intrinsic lock. When wait is invoked, the thread releases the lock and suspends execution.

The statement seems somewhat contradictory. When we invoke wait inside a synchronized method, is the intrinsic lock acquired or released? I thought it was the synchronized keyword itself that acquired the intrinsic lock.