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DBS flags yen intervention risk near 160 as USD/JPY focus shifts

DBS says Washington’s stance gives Tokyo political cover to keep intervention on the table, adding that further USD/JPY operations cannot be ruled out around or above 160.

Reported · Written up by our desk · Major Pairs

FXStreet, citing a note from Philip Wee of DBS Group Research, said markets remain focused on Japan’s difficulty supporting the yen, while underplaying broader dollar related implications.

Wee stressed that the US position gives Tokyo political cover to keep intervention on the table, and he warned that additional yen operations in USD/JPY cannot be ruled out around or above the 160 level.

The piece also noted that US dollar selling bias has supported moves higher in GBP/USD and EUR/USD during the European session, linked to weaker than expected US economic data that shifted Fed expectations and faded some geopolitical risk premium.

Separately, the newsletter update mentioned upcoming Canada July CPI as the next focus for price pressure signals after the Bank of Canada held its interest rate steady at 2.25% on July 15.

Latest closeEUR/USD 1.157 ▲0.4%|USD/JPY 159.31 ▼0.1%|GBP/USD 1.354 ▲0.3%

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