Dollar Strength Pushes USD/JPY Above Crucial 160.00 Handle

The US Dollar has seen significant price action following Kevin Warsh's hawkish speech at the Jackson Hole Economic Symposium. The speech led to a breakout in USD/JPY, with the pair pushing above the 160.00 handle for the first time since the dual intervention. This development has raised questions about potential responses from the Bank of Japan and the US Treasury Department.

USD/JPY had been stuck below the 160.00 level for two-and-a-half weeks before the breakout on Friday. The pair's ability to break above this level is a significant development, as it suggests that buyers are willing to push through resistance. James Stanley notes that the levels of interest above 160.00 are 160.64 and then 161.95, with 164.00 being a key target.

The EUR/USD pair has not been affected by the USD/JPY breakout in the same way. The pair remains supported at 1.1576, which had acted as resistance earlier in August before breaking above it.