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Japanese yen jumps as USD/JPY falls below 160

USD/JPY was down 2.4% to 159.50, with the yen also strengthening versus the euro and pound during the American session.

Reported · Written up by our desk · Major Pairs

The Japanese yen surged across multiple currency pairs in Thursday’s American session, with USD/JPY dropping below 160.00 to 159.50. FXStreet said the yen was also gaining versus other majors, with EUR/JPY down 1.9% to 183.90 and GBP/JPY falling 1.8% to 214.40.

The move came without a clear catalyst, though the rally suggests Japanese authorities may be intervening after days of speculation. FXStreet noted that while USD/JPY held above 163.00 earlier Thursday, the dollar weakened more broadly.

FXStreet pointed to softer US data as another headwind for the dollar, citing disappointing second quarter GDP that expanded at a 1.5% annual rate, below the 2.1% market expectation. The outlet said there was no official confirmation of intervention, but that Japanese authorities might have acted after seeing USD/JPY’s downside remain limited despite the USD selloff.

Looking ahead, FXStreet said the Bank of Japan will announce monetary policy decisions in the early Asian session on Friday, with market expectations still centered on rate increases roughly every six months. Commerzbank, as cited by FXStreet, said communication on when the next hike could come may matter more than the widely anticipated decision to hold.

Latest closeUSD/JPY 163.42 ▼0.2%

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