Dollar Buyers Eye 160 Yen Breakout Despite Intervention

The US dollar has found buyers on dips against the Japanese yen despite recent intervention efforts. The Bank of Japan's structural issue is its massive debt load, which would be catastrophic if rates were raised to combat inflation.

The carry trade continues to favor the US dollar, and investors are eager to test the Bank of Japan's resolve. This is evident in the price action, with buyers consistently stepping in on dips below 159 yen.

The daily chart shows a solid rally from 4,000 support, but resistance has been met around the prior weekly VPOC at 4,450. A break beneath the current support level of 4,400 would be a bearish sign for the US dollar.