#YenWeakensPast160
About YenWeakensPast160
USD/JPY rose above 160 for the first time since September, prompting Japanese finance ministry officials to warn that recent currency moves were too rapid. Japan’s October corporate goods prices rose 7.1% YoY, up from 6.8% in September, while yen-denominated import prices jumped 24.8% YoY. A weaker yen and faster producer-price inflation are intensifying import cost pressures. Further BOJ rate hikes and possible government intervention in currency markets are now in focus.
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The dollar has climbed to a new 19-month high, which could spell trouble for Japan.
Markets now see a December Fed hike as almost certain, and higher US rates keep pulling money into the dollar.
The other side of that trade is the yen. With Japan's rates still near zero, it's sliding towards 160 per dollar, and Tokyo's top currency official says the moves are "too rapid".
160 is where Japan stepped in back in 2024, selling dollars to buy yen and knocking dollar/yen down around 3% in a single day.
So 160 is the line to watch: an intervention there can knock the dollar back against the yen in a single session.
🇺🇸🇯🇵 Japan's yen just made a VIOLENT move against the US dollar, and traders are already wondering if Tokyo stepped in.
The dollar was hovering around ¥160 when it suddenly plunged to roughly ¥159.60 before bouncing back.
All within a ONE-MINUTE candle.
Earlier, Japan's top currency official warned that the yen's recent decline had been too rapid and reminded markets of the government's previous interventions.
And Tokyo has history here.
Japan spent a record ¥15.4 TRILLION defending its currency during interventions this summer, including a coordinated operation with Washington.
Now the yen is back near the same psychological threshold, and another sudden spike has traders watching closely.
Was this Japan actually buying yen, or did the threat of intervention just scare the market into doing the job for it?
finiancialjuice / Writer: Oliver
🇺🇸 United States Existing Home Sales (Oct) $USD
Actual: 3.75M
Forecast: 3.89M
Previous: 3.97M
