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USD/JPY slips back under 153 as intervention warnings weigh

BNY and Fitch both pointed to the Bank of Japan’s tightening path and rising JGB yields as key supports for the yen and domestic bond demand.

Reported · Written up by our desk · Major Pairs

USD/JPY moved back below 153 after markets took note of U.S. Treasury Secretary Scott Bessent’s warning against “testing” Japanese authorities’ resolve on yen intervention, according to FXStreet Insights citing BNY strategist Geoff Yu. The move had limited follow-through, with the report stressing that whether gains persist hinges more on the Bank of Japan’s policy direction than on intervention threats.

BNY said a sustained yen firming would require a broader BoJ tightening cycle, particularly one that extends beyond September. FXStreet also highlighted Fitch Ratings’ view that rising Japanese government bond yields and expectations for faster policy rate hikes in 2026 to 2027 should support the yen over time.

Fitch added that Japanese investors’ shift into domestic bonds is gradual rather than abrupt, supported by higher JGB yields that encourage insurers to sell lower coupon holdings and reinvest in newly issued higher coupon paper. The result, Fitch said, could help boost future coupon income and policyholder dividends under Japanese GAAP.

FXStreet further noted that recent data indicating Japanese selling of U.S. Treasurys has had little immediate impact on markets, but it underscores risks to U.S. paper and the importance of yen stability. USD/JPY was last trading near 153.00, after being under pressure for multiple sessions, with traders watching upcoming Japanese and U.S. data for direction.

Latest closeUSD/JPY 153.54 ▼0.2%

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