The USD/JPY exchange rate rebounded after falling sharply to 161.26 yen, trading within a defined range amid ongoing intervention risks and geopolitical uncertainties. According to FX Street (UOB), intraday gains are expected between 161.60 and 162.45 yen, with a broader trading range of 160.60 to 163.00 yen forecasted over the next one to three weeks.
On Monday, the pair traded above 162.00 yen, rising 0.30% for the day, as reported by FX Street. ING’s Chris Turner noted that USD/JPY is gradually climbing above 162 due to higher energy prices putting pressure on Asian currencies. This upward movement may prompt intervention by Japanese authorities ahead of the Marine Day holiday.
For Japanese investors, this cautious trading environment highlights the market’s sensitivity to external pressures, including geopolitical risks and policy actions, which could impact yen volatility in the near term.