Japanese authorities likely intervened as USD/JPY hit intraday lows near 155.00 before recovering to 156.42.
USD/JPY pared early losses to trade at 156.42 after dipping to an intraday low near 155.00, with traders suspecting Japanese authorities stepped in to support the yen. The move followed a sharp drop that erased recent dollar gains against the yen.
Earlier, the pair had climbed above 158.00 amid broad dollar strength, but intervention fears and hopes of a US-Iran deal weighed on the greenback. No official confirmation of intervention has been released, though market patterns mirrored past Tokyo actions.
The yen’s rebound came despite persistent US-Japan rate differentials, as traders awaited further cues from upcoming US inflation data and Fed commentary.