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Japanese yen steadies as USD/JPY tests the 160 level

USD/JPY opened the week at 157.30 after the yen snapped a five-session slide, with intervention risk still in focus as the pair nears 160.

Reported · Written up by our desk · Major Pairs

USD/JPY opened the week at 157.30, after the Japanese yen moved away from two-week lows and snapped a five-session losing streak, Action Forex reports. The yen found support from remarks by Finance Minister Satsuki Katayama, who said Donald Trump raised concern about yen weakness in a meeting with Prime Minister Sanae Takaichi earlier in the week.

Markets are watching intervention risk as USD/JPY approaches the psychologically important 160 level, which could test how far Tokyo is willing to allow further yen weakness. Katayama also said she would continue coordinating with US Treasury Secretary Scott Bessent after the joint Japan and US intervention in late July, the first such action since 1998, according to Action Forex.

Still, the outlet notes pressure on the yen has not fully eased, as expectations for additional Federal Reserve rate hikes keep the US-Japan interest-rate differential wide. At the same time, uncertainty around the pace of further Bank of Japan tightening limits the yen’s upside potential.

Action Forex adds that on the H4 USD/JPY chart, after the market completed a growth wave to 159.00, it formed a corrective pattern.

Latest closeUSD/JPY 157.19 ▼0.7%

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