Yen Upsurge Capped by Intervention Risk
The Japanese Yen (JPY) has regained some ground against the US Dollar (USD), as traders hesitate to push the pair higher amid concerns of intervention by Japanese authorities.
At the time of writing, USD/JPY trades around 157.95 after touching an intraday high near 158.44.
The US Dollar remains firmly supported by elevated US Treasury yields and resilient economic data, with the benchmark 10-year US Treasury yield holding at 5.25%, its highest level since 2002.
Recent US economic data points to continued resilience, allowing the Federal Reserve (Fed) to keep borrowing costs elevated.
Brown Brothers Harriman's Elias Haddad notes that Japan's latest data and policy signals continue to argue against a rapid shift in the BoJ's stance, suggesting the bar for further tightening remains high.