The yen weakens against the dollar after robust US manufacturing data, pushing the USD/JPY pair close to intervention-triggering levels.
The USD/JPY pair climbed toward 159.70 on Monday, approaching the 160.00 threshold that has previously triggered Japanese intervention. The yen’s decline follows stronger-than-expected US manufacturing data, bolstering the dollar’s appeal.
Markets had anticipated a modest uptick in US factory activity, but the latest figures exceeded expectations, reinforcing bets on Federal Reserve policy divergence. The yen has struggled amid widening US-Japan yield differentials and persistent geopolitical risks in the Middle East.
Traders are closely monitoring the 160.00 level, where Japanese authorities have historically stepped in to curb excessive yen depreciation.