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Yen jumps broadly as USD/JPY breaks below 155

USD/JPY falling through 155, a level that previously held after Japan intervention episodes, comes alongside rising Japan 10-year JGB yields.

Reported · Written up by our desk · Major Pairs

The yen strengthened by roughly 1% against every major currency on Monday, with USD/JPY breaking through 155, a level that had repeatedly acted as a floor after Japan’s earlier intervention episodes this year, Action Forex reports.

The move extended the yen’s cumulative gain versus the dollar to about 3.3% over the first five trading sessions of September. The speed of the reversal also stood out, with USD/JPY trading above 160 just last Tuesday.

Action Forex said the yen rally is being evaluated through a different lens than prior intervention driven moves because Japan’s 10-year JGB yield rose alongside the currency, a pattern that would fit a hawkish Bank of Japan repricing.

Markets are increasingly pricing further BoJ tightening, with OIS indicating about an 82% probability of a 25bp hike at the September 17 to 18 meeting, implying roughly 20.5bp of tightening and a more aggressive longer dated policy path than previously expected.

Latest closeUSD/JPY 157.84 ▼0.3%

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