The pair recovers from Monday’s lows near 155, with the 200-day SMA at 158 acting as resistance amid fading intervention impact.
USD/JPY climbed to 157.60 on Tuesday, recovering from a Monday dip to 155, its lowest since May 6. The rebound follows a softer USD and fading effects of recent currency intervention by Japanese authorities.
Analysts suggest a sustained yen rally depends on improved domestic growth rather than further intervention or Bank of Japan rate hikes. Societe Generale warns that weak Japanese growth could undermine higher JGB yields, while BBH notes intervention has raised the cost of betting against the yen.
Technically, the pair faces resistance at the 200-day SMA (158), with the 100-day SMA at 160 further above. The intervention-driven pullback has weakened the near-term bullish structure.