The yen pair retreated from a 40-year high as traders monitor potential Japanese intervention amid elevated volatility.
USD/JPY fell abruptly from a session high above 161.90 to 161.20 before recovering to 161.65. The move follows a weekly close at its highest level in four decades, raising speculation over possible official action.
The pair breached June’s peak of 161.80 but remains below the July 2024 intraday high of 161.99. Japanese authorities have repeatedly signaled vigilance over rapid yen depreciation, heightening market sensitivity to further swings.
Traders are on alert for intervention as the Ministry of Finance faces pressure to stabilize the currency. Volatility persists amid geopolitical uncertainties and divergent monetary policy expectations.