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Japanese yen steadies as intervention warnings limit USD/JPY gains

BBH expects USD/JPY to stay in a 155.00 to 160.00 range near term as the yen weakness joint message from Tokyo and Washington curbs intervention risk.

Reported · Written up by our desk · Major Pairs

BBH strategist Elias Haddad, via FXStreet, said the US dollar is broadly firmer, but recent warnings from Japanese officials are supporting the Japanese yen and limiting upside for USD/JPY.

Japan’s top currency diplomat reiterated a “very clear” joint message from Tokyo and Washington on yen weakness, according to the BBH commentary cited by FXStreet.

BBH expects USD/JPY to trade within a 155.00 to 160.00 range in the near term, arguing that intervention risk is likely to constrain moves.

The piece also notes the dollar’s firmness is being reinforced by US yields near multi-year highs and inflation concerns linked to higher oil prices and expectations for an October Fed rate hike.

Latest closeUSD/JPY 157.19 ▼0.7%

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