Market uncertainty persists as the yen remains under pressure despite dollar weakness, with intervention risks keeping traders cautious.
USD/JPY has traded narrowly around 159.00 for over a week, defying a softer dollar tone as yen fundamentals remain unchanged. The pair’s stability reflects heightened intervention risks, with authorities signaling readiness to act if levels approach 160.00.
Analysts remain divided on the yen’s outlook. Bank of America previously forecast USD/JPY at 149 by year-end but now sees risks shifting against that view. The recent joint intervention has deterred investors from fading the yen’s rally, reinforcing caution.
Despite the dollar’s weakness, the yen’s path of least resistance still points downward, though intervention threats may limit further declines in the near term.