USD/JPY near 160 resistance due to crude price spikes
The Japanese Yen has retraced half of its post-intervention drop, with US-Japan rate spreads already narrowing in favor of the JPY.
The BoJ’s policy rate is near the lower end of its neutral range estimate, while Japan’s economy is operating above potential.
Crude oil price spikes are the main obstacle to Yen gains, and FX intervention can only cap USD/JPY upside but not drive a sustained decline.