The USD/JPY currency pair is holding steady near the 160.00 mark on Thursday, November 12, 2026, after testing highs last seen in early September. Despite some attempts by the yen to recover, the pair remains above 159.50, suggesting that any reversal may not yet be sustained.
The yen is receiving support from expectations of a Bank of Japan (BoJ) rate hike in December, as well as rising wholesale inflation. Preliminary CGPI data for October showed a 0.7% month-on-month increase in wholesale inflation, the first rise in three months, with the annual rate accelerating to 7.1% from 6.8%. Additionally, Atsushi Mimura, Japan’s chief currency diplomat, warned about excessive exchange rate volatility, reigniting concerns over potential currency intervention.
Meanwhile, the US dollar is maintaining its strength near levels last observed in April 2025. Markets are increasingly anticipating another Federal Reserve rate hike, with some even pricing in a 50-basis-point move in December. Geopolitical tensions, particularly the US-Iran confrontation, are also contributing to the dollar’s resilience.
Technical analysis indicates that the upward structure of USD/JPY remains intact. On the H4 chart, the pair has broken out of the 158.81 area and is consolidating near 159.96. A break above this level could push the pair towards 160.36, while a correction towards 159.00 is also possible before the upward trend resumes. The MACD indicator supports a positive medium-term outlook, though momentum appears to be weakening.