Post #16036

USD/JPY Reverses Above 160 as Intervention Risk Returns USD/JPY pushed above 160 but quickly reversed as officials stepped in with verbal intervention. That level remains a clear line in the sand—markets know real intervention risk picks up here. The yen is still under pressure from the same driver: higher oil and import costs tied to the Middle East conflict. That’s a direct hit to Japan’s economy and keeps JPY weak structurally. But once price breaks into intervention territory, officials start talking—and the market listens. Warnings around speculative activity signal that authorities are getting uncomfortable with the pace of the move. USD/JPY is still driven by macro (oil, rates), but above 160, you’re trading against intervention risk. That’s what creates these sharp reversals. - Alan