The currency pair fell to 160.87 as traders suspect Japanese authorities may have intervened to support the yen.
USDJPY extended losses to 160.87, approaching the July low of 160.446, amid market chatter about potential intervention by Japanese officials. The move follows a sharp decline from last week’s highs, with key support levels now in focus.
The pair last traded below the 100-day moving average at 160.107 on May 14, a level that could act as the next target if current momentum persists. The July low of 160.446 remains a critical threshold, with a break below potentially accelerating selling pressure.
Traders are monitoring the situation closely, though no official confirmation of intervention has been reported. The yen’s weakness has been a persistent theme this year, driven by diverging monetary policy expectations between the U.S. and Japan.