• Yen trades circa the key 160 level that keeps traders on intervention alert

• USD/JPY has seen a 159.59-160.09 range, on Thursday, according to EBS data

• An internal model shows USD/JPY should be trading well above 160

• There is scope for gains to retest the 2026 160.72 peak

• A break above 160.72 peak would put the Japanese authorities under pressure to act

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

Daily Chart


Correlation Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)