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USD/JPY stays near 40-year lows for yen amid intervention wait
USD/JPY last traded at 162.27, with yen weakness attributed in part to reports of no near-term state pension asset-structure changes and to higher oil prices tied to Strait of Hormuz tensions.
USD/JPY held near recent highs on Tuesday, closing at 162.27 as the Japanese yen stayed close to 40-year lows, according to Action Forex. The outlet said pressure on the yen persisted because Japanese authorities have not yet announced fresh interventions to support the currency.
Action Forex linked the yen’s slide to Monday’s reports that Japanese authorities do not plan to change the asset structure of the state pension fund in the near term, reducing expectations for additional support. Later, Finance Minister Satsuki Katayama said the country’s largest pension fund could adjust its investment structure if necessary, and she proposed including government bonds in a tax-free investment program for private investors to boost demand for domestic assets.
The outlet also pointed to a strengthening US dollar and a fresh rise in oil prices as additional factors weighing on USD/JPY. It cited President Donald Trump’s decision to restore a blockade of Iranian ships passing through the Strait of Hormuz, along with his call for countries that benefit from the route’s security to compensate Washington for protection costs.
Action Forex added that its technical view shows USD/JPY consolidating around 162.22, extending up to 162.46 on the H4 chart. On lower time frames, it described a completed downward move toward 162.22, with potential for a further push higher toward 163.30 and, if that level is broken, toward 164.15.
Latest closeUSD/JPY 162.44 ▲0.1%