USD/JPY Stuck in Range as Intervention Fears Trump Treasury Yields

USD/JPY is struggling to break above the 160.00 level as intervention risks weigh on traders' minds, according to Credit Agricole.

The bank believes that the pair has settled back into a familiar range of 155.00 to 160.00, with the threat of renewed intervention causing caution among traders.

Japan's top currency diplomat Mimura reinforced this view by warning markets to take Tokyo and Washington's signals seriously, but stopped short of confirming another round of intervention was imminent.

The technical picture also suggests that USD/JPY is facing resistance at the 160.00 level, with price falling back below its former breakout levels after breaking above the 200-day moving average and descending trendline from July.