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Yen slides past 163 as investors unwind positions

USD/JPY broke above 163, with traders pointing to widening global yield gaps and higher energy prices as key drivers ahead of the Bank of Japan’s July 31 meeting.

Reported · Written up by our desk · Major Pairs

The Japanese yen fell to another four-decade low, pushing USD/JPY above 163 as investors continued to unwind yen positions.

Action Forex said the move reflects widening global yield differentials and surging energy prices, and it raised renewed questions about whether Japanese authorities will intervene to slow the decline. The piece noted markets currently appear unconvinced that intervention is imminent.

Ahead of the Bank of Japan’s July 31 policy meeting, Japanese officials reiterated they could take action. Finance Minister Satsuki Katayama said the government’s stance “has not changed at all” and that authorities would “take decisive action appropriately at any time” if needed, while Chief Cabinet Secretary Minoru Kihara repeated that the government stood ready to “respond as appropriate at any time.”

Action Forex added that traders largely ignored the warnings, underscoring a view that verbal intervention has become less effective after repeated use, and that the absence of public comments from currency diplomat Atsushi Mimura left investors with little reason to expect immediate action.

Latest closeUSD/JPY 162.90 ▲0.3%

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