USD/JPY Pauses Near 160.00 After Japan-US Intervention
The Japanese Yen (JPY) has seen a rare surge in value against its major currency peers, following a joint intervention by Japan and the US to support the Yen. On Tuesday, the JPY traded lower against the US Dollar (USD), but its losses were capped at around 157.60 after the unprecedented move.
The US Treasury and Japan's finance ministry have jointly intervened in the foreign exchange market, with Japanese Finance Minister Satsuki Katayama stating that their action was aimed at countering 'excessive volatility and disorderly movements' in recent months.
As a result of this intervention, investors are expecting a short-term respite for the USD/JPY pair near 160.00. However, analysts are cautioning that the pair may retest its neckline around 155.10 if it fails to regain bullish momentum above the July 16 low near 162.00.