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USD/JPY holds just above 159 as Japan intervention ceiling caps gains

After Japan and the U.S. helped fund a major late-July operation, USD/JPY has given back about half of the prior selloff and repeatedly stalled below 159.5.

Reported · Written up by our desk · Major Pairs

USD/JPY is trading just above 159.00 late Tuesday, August 25, holding a gain of under 0.1% as price action remains contained in a roughly 44-pip range between a floor near 159.00 and a ceiling below 159.50, FXStreet reported.

FXStreet said that the Marching higher attempts have been capped at the 159.50 area for about three weeks, with the 50-day exponential moving average rolling over from a late-July peak toward 160.00.

The outlet linked the earlier sharp move to Japan’s reported one-session sale of 8.45 trillion yen at the end of July, plus roughly 5.3 trillion yen more in coordination with the U.S. Treasury that drove USD/JPY from just beneath 164.00 to a low just above 155.00.

Looking ahead, FXStreet noted that currency futures now price roughly 82% odds that the Bank of Japan will raise rates at the September 17 to 18 meeting, taking the policy rate to 1.25% from 1.00%, while Japan’s inflation acceleration and comments in the July policy statement keep the hike case in focus.

Latest closeUSD/JPY 157.84 ▼0.3%

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