USD/JPY Stabilizes Below 160 as Yield Gap Remains Wide

The USD/JPY exchange rate has steadied at around 159.50, up 0.05% in a relatively narrow trading range of 42 pips. This marks its fifth consecutive session of modest gains.

The pair remains below the declining 50-day EMA (Exponential Moving Average) at 160.00 and above the rising 200-day EMA near 158.00, with the daily Stochastic RSI climbing towards 69.

This stabilization follows massive joint interventions by Tokyo and Washington in late July, which saw a record 8.45 trillion yen deployed to drive the pair down to the 155.00 area. Despite this intervention, the market has already clawed back half of those losses.