USD/JPY Tests Japan's Intervention Line as Carry Demand Rebuilds
The USD/JPY pair has been testing Japan's intervention line as carry demand rebuilds. The dollar rose to 159.4570 against the yen on Thursday, August 13, up 0.02% from the previous session.
The recent sequence is a familiar one: an official operation delivers a one-month gain inside a one-year collapse. Over the past month, the yen has strengthened 1.72%, while over twelve months it's down 7.97%. The pair traded above 163.50 in late July and fell close to 155 on August 3 following coordinated official action.
The market has recovered roughly 48% of the intervention-driven decline in eight trading sessions, with the 160.00 psychological level sitting 54 pips above spot. Traders treat this threshold as the clear trigger for a fresh round of coordinated or solo yen-buying.