• USD/JPY stalls ahead of the cycle high (162.84) once again

• With both CPI and PPI now leaning softer, USD momentum on the topside should fade

• Pullbacks remain shallow, underlying bid supported by persistent carry demand across JPY crosses

• Cross-JPY strength continues to provide a floor for USD/JPY, limiting downside follow-through

• However, with spot firmly in intervention territory, appetite for a sustained topside break remains constrained

• Resistance seen at 162.84 - a move through 163 would materially increase asymmetric risks of a sharp pullback

• Initial support at the 200-hour MA cluster (162.07)

• Break below exposes the post-U.S. CPI swing low at 161.60

• Deeper support seen at 160.70
USDJPY daily chart


Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))