Yen Weakness Continues as USD/JPY Fails to Break Key Resistance

The Japanese yen continued to weaken on Monday, August 24, as the USD/JPY pair hovered just below the key resistance level of 160. The U.S. Treasury's plan to expand repurchase operations triggered a broad sell-off in the dollar, pushing the pair down to 158.55 at one point.

However, as U.S. Treasury yields regained lost ground, the pair rebounded to around 159.00, but continued to face resistance at 160.00 due to concerns about potential intervention by Japanese authorities.

The 160.00 level has become a psychological barrier for the USD/JPY pair, and market participants believe that once this level is approached, the risk of coordinated intervention by Japan's Ministry of Finance and the central bank will rise sharply.

This expectation itself acts as a powerful headwind to upward momentum, making it difficult for bulls to push prices decisively higher. As a result, the exchange rate repeatedly stalls near key psychological thresholds, creating a pronounced pattern of resistance at higher levels.