The currency pair hovered near 160, a key psychological barrier, amid speculation over potential Japanese authorities’ intervention to support the yen.
USD/JPY traded near 159.19 at the start of the week, testing the 160 level multiple times as traders monitored for signs of Japanese intervention. The pair briefly dipped below 159 during Tokyo and European sessions but rebounded on stronger US economic data and rising oil prices, reaching 159.78.
The 160 mark acted as psychological resistance, with caution over potential intervention capping gains. USD/JPY retreated toward 159 before a US Treasury announcement on expanded UST buybacks triggered broad dollar selling, pushing the pair to a low of 158.03.
The yen weakened against other currencies, with EUR/JPY rising above 185 for the first time since July 31. USD/JPY later recovered as US Treasury yields stabilized, erasing earlier losses but remaining top-heavy near 159.