Dollar Strength Propels USD/JPY to New Weekly High Above 158.00

The US dollar continued its upward momentum against the Japanese yen, pushing the USD/JPY pair to a new weekly high above 158.00 on Thursday.

This surge was fueled by stronger US dollar sentiment, driven by elevated Treasury yields and an upward revision to US Q2 GDP growth, as well as concerns over oil-linked inflation.

Japanese officials intensified their verbal response to yen weakness, with top currency official Atsushi Mimura warning investors that Tokyo would take coordinated action with the US on foreign-exchange depreciation.

In anticipation of potential Bank of Japan rate hikes and ongoing intervention rhetoric from Japanese policymakers, traders are cautiously eyeing further upside in USD/JPY despite broader dollar strength.