USD/JPY continues to nudge higher in testing Japan's intervention limits
USD/JPY — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
UOB | Bearish | 163.00 |
Citi | Bearish | 163.00 |
MUFG | Bullish | 146.00 |
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The struggle continues for the yen currency, even if market players are feeling more optimistic about the US-Iran situation. With each passing day the war continues, the damage to the Japanese economy continues to stack up. That especially as the Strait of Hormuz remains in de fa
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4 itemsUSD/JPY treads with caution amid fear of incurring another intervention hit
The USD/JPY pair is currently navigating a cautious landscape, primarily influenced by geopolitical tensions and market sentiment regarding potential intervention from Japanese authorities. Per the full note from Justin Low at investinglive.com, traders are wary of pushing USD/JPY higher, particularly around the 157.20-30 levels, where the Ministry of Finance (MOF) has shown a readiness to intervene. The recent uptick in 30-year Treasury yields crossing above 5% is also contributing to the dollar's strength, complicating the yen's position. With the MOF likely having intervened multiple times since last Thursday, the market is on alert for any signs of further action, especially if USD/JPY approaches critical resistance levels.
USD/JPY flirts with a key upside breakout as yen's intervention-led gains continue to fade
The desk sees the USD/JPY poised for a potential upside breakout as the yen's recent gains, driven by intervention, appear to be waning. Per the full note [source], the US dollar has regained traction amid higher-than-expected inflation data and geopolitical tensions, while the Bank of Japan's dovish stance continues to weigh on the yen. With the USD/JPY testing the critical 158.00 resistance level, a breakout could signal a move towards 162.00, contingent on the Fed's evolving policy stance and upcoming economic data. The market remains cautious, awaiting the US Retail Sales report and Jobless Claims figures, which could provide further direction.