USD/JPY ticks higher on Tuesday, moving toward the 160.00 mark once again and raising the risk of another intervention by Japanese authorities.
At the time of writing, the pair trades around 159.80
The move higher in USD/JPY appears largely driven by speculation, as the US Dollar (USD) trades slightly lower against most major currencies amid cautious optimism surrounding a potential US-Iran peace deal. US President Donald Trump told ABC News on Monday that he expects Washington and Tehran to reach an agreement within the next week to extend the ceasefire and reopen the Strait of Hormuz. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is trading consolidating losses above the 99 mark.
Is another Yen intervention getting closer? With USD/JPY once again approaching the 160.00 level, traders are increasingly watching for signs of another intervention by Japanese authorities. Japan’s Finance Minister Satsuki Katayama said on Tuesday that authorities remain ready to respond in the currency market if needed.