USD/JPY Stable After Intervention, But Analysts Warn of Weakening Yen
The USD/JPY pair has stabilized after its intervention-led selloff, but analysts at Societe Generale caution that a lasting recovery in the Japanese Yen will depend on domestic growth rather than policy actions.
According to strategists at BBH, the recent coordinated US-Japan intervention significantly raises the cost of fighting a stronger yen and puts a firmer ceiling on USD/JPY.
The pair has slipped below major moving averages, turning the near-term bias bearish. The 200-day SMA at 158 offers immediate resistance, while the RSI signals oversold conditions.