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Japanese yen holds near 159.25 after rare US-Japan intervention

Analysts say the pair is likely to stay capped near current levels, with one outlook setting a 157.0 to 160.2 range in the near term.

Reported · Written up by our desk · Major Pairs

The Japanese yen has remained near 159.25 per US dollar after a rare coordinated foreign exchange intervention by Japanese authorities and the United States, the FXStreet newsletter said.

FXStreet cited UOB’s view that after a sharp USD rally, USD/JPY has shifted into consolidation near 159.25, and that deeply overbought conditions make an immediate breakout above major resistance unlikely.

Over a multi week horizon, UOB expects USD/JPY to remain contained within higher boundaries, anchored by moving average support, and projected a trading band of 157.0 to 160.2, with less room for aggressive gains past 159.60.

FXStreet also highlighted DBS Group Research’s assessment that the joint action, involving the US Treasury for the first time since 2011, helps narrow the yen’s historical undervaluation and provides a more credible structural floor, while limiting spillover damage to other Asian FX markets.

Latest closeUSD/JPY 159.29 ▲0.9%

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