• USD/JPY has risen from 158.78 to 159.26, on Tuesday, according to EBS data

• There is a good chance USD/JPY will eventually climb to retest 160

• Traders see the 160 level as the line in the sand for intervention

• Multiple failures to close below the broken 158.49 Fibo show bears are now trapped

• 158.49 Fibo is a 23.6% retrace of the 152.10-160.47 2026 (EBS) rise

• 30-day log correlation between USD/JPY and EUR/JPY is well below +0.5 (relationship broken)

Daily Chart


Correlation Chart


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