The yen edges higher against the dollar despite strong U.S. jobless claims and hawkish Fed commentary, signaling potential intervention risks.
The dollar-yen pair retreated slightly to just below 162.50 on Thursday, paring back from four-decade highs reached earlier in the week. The move comes despite supportive U.S. data, including initial jobless claims at 215K, below the 218K consensus, and hawkish remarks from a Federal Open Market Committee voting member.
The yen’s resilience contrasts with broader dollar strength, fueled by rising crude oil prices after U.S. strikes on Iran and persistent geopolitical tensions in the Strait of Hormuz. Japan’s energy import dependence has pressured the yen, pushing USD/JPY to levels last seen in 1986.
Technical indicators suggest the pair may be stalling, with the Stochastic RSI exiting overbought territory near 74. Analysts note the lack of follow-through on bullish catalysts could signal intervention risks, as the pair hovers near levels that previously triggered official action.