The USD/JPY currency pair is trading close to recent highs but remains capped below the July 2024 peak of 161.95 yen, as intervention risks continue to limit further upside, according to FX Street citing MUFG.
OCBC, also reported by FX Street, notes that USD/JPY has recently broken back above the 160 yen mark. However, fears of official intervention and warnings are restraining gains compared to other G10 currency pairs.
For Japanese market participants, these dynamics highlight ongoing sensitivity around the yen’s valuation, with authorities likely to step in to curb excessive weakness amid global volatility and Japan’s economic policy considerations.