USD/JPY trades at 161.75, approaching 1984 highs, as analysts urge intervention to curb speculative pressure on the yen.
The yen hovers near 161.75 against the dollar, a level unseen since 1984, as markets test Japan’s resolve to defend its currency. Analysts argue the Ministry of Finance must intervene decisively to deter speculators, with USD/JPY accelerating past 161 last week and nearing 162.
Japan’s FX reserves stand at $1.3 trillion, enough for over 15 interventions at the scale of April-May’s efforts. However, recent data suggests the pace of yen selling has intensified, with shorts building to notable levels. The energy complex may provide some support, but analysts warn inaction risks further sharp declines.
Traders are closely watching for signals from top officials, particularly Vice Finance Minister for International Affairs Masato Kanda, as the pair probes 2024 highs near 161.95.