Officials alert traders to potential additional measures after Japan’s recent move to stabilize the yen near 160.86.
The US Treasury Department has advised currency market participants to prepare for possible further intervention following Japan’s action to support the JPY. The yen surged from around 163.30 to a low near 158.00 before retracing to 160.86, the midpoint of Thursday’s range.
Prior to the intervention, the JPY had weakened significantly, with resistance levels identified at 160.560 (38.2% retracement) and 160.068 (6100-day moving average). Volatility has since increased, with the yen trading between 158.50 and 160.86.
The move follows Japan’s first currency intervention since 2022, aimed at curbing excessive yen depreciation amid diverging monetary policies.