USD/JPY – Back at 160, Where Japan Drew the Line
USD/JPY is trading near 160 once more. This is the same spot where Japan stepped in at the end of April to defend the yen. Back then, the government bought yen to strengthen it, and the pair fell sharply before slowly climbing all the way back.
Now the pressure is building again. The yen is weak because US interest rates are high while Japan's rates are very low, so money keeps flowing into the dollar. This week, Japanese officials started warning the market again — the kind of talk that usually comes just before they act.
Tomorrow's US jobs report is the trigger. A strong number would push US rates higher and could send USD/JPY through 160. That's the move that might bring Japan back into defending the yen. A weak number would ease the pressure and let the pair drift lower on its own.
So the setup is simple: the market wants to break above 160, Japan doesn't want to let it.
Key levels:
- Resistance: 160.00 (intervention line), then 160.50 and 161.00
- Support: 159.00, then 158.00 and 157.00
Watching: Friday's US jobs report, warnings from Japanese officials, and any sudden sharp jump in the yen, which can be a sign of intervention.
By Born2trade market research department
Risk Disclaimer: All research and/or forecasts above reflect the author's personal opinion and cannot be treated as trading advice. born2trade is not responsible for any trading results based on any information in this article. Trading Forex and CFDs carries a high level of risk to your capital. You may lose all of your invested funds. Forex and CFD trading may not be suitable for all investors. Please ensure that you fully understand the risks involved and, if necessary, seek independent advice.
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