Yen Strength Tests Psychological Resistance at 160

The Japanese Yen's strength against the US Dollar (USD) has been tested by psychological resistance at the 160 level, amid fears of possible intervention from Japanese authorities.

Around August 17, the USD/JPY pair opened near 159 and repeatedly tried to break through the 160 barrier, but was held back. This level acted as a key psychological resistance point for traders.

The pair eventually slipped below 159 during Tokyo trading on August 17 before reversing course with improving US economic data and rising oil prices. It continued to edge higher the next day, reaching a high of 159.78.

However, gains were short-lived as the 160 level proved stubborn, causing the pair to gradually fall back towards 159 during Tokyo trading on August 19.