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USD/JPY edges higher after coordinated Japan and US intervention
The yen briefly strengthened toward ¥155 after Tokyo reportedly spent about $34 billion in a single session, but it has since traded near ¥158 amid uncertainty over how long intervention can last.
USD/JPY has rebounded from the lows hit after coordinated Japan and US intervention, with the pair pulling back from a four-decade low near ¥164 to around ¥158, according to Action Forex. The yen was initially pushed toward ¥155 after Japan reportedly spent about $34 billion in a single session to defend its currency, but those gains have since been pared as markets question intervention’s staying power.
The article points to the interest-rate gap between the US and Japan as the key underlying driver. It also notes that rebounding oil prices, linked to renewed tensions in the Strait of Hormuz, may be adding to market pressure on currencies.
Looking ahead, traders are watching for whether central bank actions or data move first. Action Forex says the market focus includes a potential Bank of Japan hike in September, supported by six straight months of rising real wages, while recent Fed “dissents” in July, where three policymakers preferred a hike over a hold, keep US rates as a key influence.
Technical levels are also in focus, with the piece describing USD/JPY testing the 0.382 Fibonacci retracement near 158.48 and pointing to an ascending trendline from the intervention low. It adds that a decisive break above that retracement could open the door to higher levels, while a break below the trendline would invalidate the recovery structure and raise the odds of a retest of the intervention low near 155.21 to 156.00.
Latest closeUSD/JPY 158.52 ▲0.6%