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USD/JPY faces practical intervention ceiling near 160, says BNY

BNY analyst Geoff Yu points to the strongest yen flows since mid-July and says intervention alone may not sustain longer-term yen gains.

Reported · Written up by our desk · Major Pairs

BNY’s Geoff Yu said strong Japanese yen inflows and a continued slide in USD/JPY suggest markets are reluctant to challenge Japanese and U.S. authorities’ resolve to defend the currency.

Yu argued that the heavy yen selling that followed earlier intervention has largely run its course, with data showing JPY flows on Tuesday were the strongest since mid-July.

He said around 160 in USD/JPY is increasingly acting as a practical intervention ceiling, which may make traders less willing to add fresh shorts and could raise the risk of renewed pre-intervention buying.

Yu also expressed skepticism that intervention alone can drive sustained yen appreciation, noting Japan’s policy mix remains reflationary, even as the current environment differs from the early Abenomics period.

Latest closeUSD/JPY 158.82 ▼0.9%

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