The yen weakens past 161.76, nearing 2024 peaks and 1986 levels, as traders unwind short positions amid fading intervention fears.
The USDJPY pair climbed to 161.76, its highest level since 1986, as a short squeeze drives momentum. The rally breached key resistance, with traders abandoning bets on Japanese intervention to support the yen.
Earlier this year, intervention fears triggered a sharp drop from 160.717 to near 155.017. Since then, the pair has recovered steadily, but caution persisted around the 160.00 level. Today’s breakout suggests traders are reassessing the risk of official action.
The move above 161.919, the 2024 high, has intensified pressure on short positions. With the pair nearly 200 pips above 160.00, traders face mounting losses, fueling further upside momentum.