USD/JPY Stalls as Traders Bet on No Break Below 155

The US and Japan's coordinated Yen-buying intervention has extended the Japanese currency's rally into this week's session, but it's not having its expected effect on USD/JPY. Despite confirmation of last week's joint operation, the pair stalled just above the key 155 support level as buyers emerged.

This suggests traders don't believe the intervention was designed to force USD/JPY meaningfully below 155, but rather to prevent a rapid return above 160. Instead of pushing down on USD/JPY, Yen strength is being squeezed into other crosses, with high-yielding currencies like AUD/JPY and NZD/JPY bearing the brunt.

A week of top-tier US data begins today, starting with ISM Manufacturing, which will shape the Fed's flexibility heading into next week's CPI report. The market still leans toward further tightening, but without strong conviction.