Forex
USD/JPY Exchange Rate Stabilizes After Joint Intervention
The USD/JPY exchange rate stabilized after a historic joint currency intervention by Japan and the US, which led to a nearly 5% appreciation in the yen over three sessions.
The Japanese yen had fallen to four-decade lows in July 2026 due to rising energy prices, budget risks, and interest rate differentials.
However, with real wages in Japan rising for the sixth consecutive month in June, there are signals that the Bank of Japan may support further rate hikes, which could contribute to yen strength.
The technical analysis indicates a consolidation range around 157.17, with a potential pullback towards this level before resuming an upward move to 159.10.