• USD/JPY down 0.1% on light Japanese sales after closing 0.45% higher Wed

• Boosted by hawkish Fed shift, surging U.S. yields; 2-yr yield up 10 bps

• Rising oil prices sap JPY; Brent hits $120 for 1st time since June 2022

• Net short yen position vs dollar biggest since July 2024 - CFTC

• Japan retail investors hold biggest yen short vs crosses since 2020 - HSBC

• Traders brace for verbal intervention as Japan markets return from Wed break

• Resistance 160.45-50, 161.00, support 159.80-90, 159.40-50

• Wednesday range 159.52-160.48, Asia range 160.08-160.46
Japan yen positioning:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)