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USD/JPY hits fresh 40-year high as yen intervention fears fade
The yen was down 0.8% for the week to date and, with Japan facing a six-month inflation high and higher oil-price sensitivity, the pair was still holding near 163.70 after consolidating between 163.97 and 163.70.
USD/JPY surged to 163.81, a new 40-year high, as a broad strengthening of the US dollar left investors unmoved by warnings from Japanese authorities about potential currency intervention, Action Forex reported.
The yen’s slide also drew support from expectations that the Bank of Japan could allow a faster pace of rate hikes than markets currently assume, along with renewed pressure tied to concerns about Prime Minister Sanae Takaichi’s fiscal policy and the escalating US–Iran conflict.
Action Forex linked Japan’s vulnerability to rising oil prices to the country’s heavy dependence on energy imports and noted that Japanese headline inflation reached a six-month high in June, factors that could keep rate expectations elevated.
On the technical side, the pair was seen forming a consolidation range around 163.70, with projections in the article pointing to upside toward 164.27 and potentially 164.84 if levels break, while the yen remained on track for its worst weekly performance since May.
Latest closeUSD/JPY 163.84 ▲0.4%