USD/JPY is maintaining a firmly bullish tone, reclaiming the key 160 psychological level despite pressure from softer oil, lower U.S. yields, and ongoing intervention concerns. Intraday action shows persistent dip-buying ahead of the Tenkan-sen near 159.42, with Friday's US jobs report looming and as large options expire. While daily indicators such as stochastics hint at a possible pullback and some yen short-covering, near-record futures open interest underscores continued buildup of short yen positions.

Further gains would target 160.47, the March high, followed by the April 30 peak at 160.72.

Ministry of Finance data suggests rising JGB yields are beginning to attract investor flows, which could intensify if the Bank of Japan delivers a widely expected 25 basis point rate hike to 1% and signals adjustments to bond tapering.

While JGB buying may buoy the yen, USD/JPY would need to fall below its 158.78 21-DMA, the cloud top at 158.11 and May 6 high at 157.93 to attract bears.
Yen


(Robert Fullem is a Reuters market analyst. The views expressed are his own.)