USD/JPY tests the 160.00 resistance level, but intervention fears from Japanese officials, who previously spent ¥15.4 trillion ($97bn) to defend the yen, are expected to limit further upside.
USD/JPY has tested the key 160.00 resistance and Japan's top currency official Atsushi Mimura warned moves have been 'too fast', reviving intervention fears. Japan spent a record ¥15.4 trillion ($97bn) supporting the yen this summer, and past intervention plunged the pair from 163.74 to 155.23 within days. That threat skews risk-return against further JPY selling, capping upside even as dollar strength persists.
USD/JPY faces renewed intervention risks as the pair tests the 160.00 resistance level. Japan's top currency official, Atsushi Mimura, warned that recent moves have been too fast, echoing concerns from this summer when Japan spent a record ¥15.4 trillion ($97bn) to support the yen. While dollar strength continues to exert upward pressure, the threat of official action is expected to cap further gains.
Japanese officials have signalled discomfort with fast yen moves, and Japan previously spent a record ¥15.4 trillion ($97bn) in July and August to prop up the yen, which pushed the pair from 163.74 down to 155.23. Traders see renewed intervention as likely if 160.00 is broken.
Not necessarily. The article says dollar strength still puts upward pressure on the pair, but intervention risk tilts the risk-return against further yen selling and should limit overshoots above 160.00.