• USD/JPY still trading deep in intervention territory, holding just below 162

• Price action remains jittery; note Thursday’s sharp but short-lived dip sub-161

• Yesterday’s 161.81 high within touching distance of the 161.96 cycle peak

• Intervention risk clearly elevated as we grind back toward highs

• That said, macro backdrop remains decisively USD-supportive - markets reprice Fed hawkishly

• In turn, any intervention may only generate temporary JPY support as was the case in Apr-May

• Dips likely to be well-supported as underlying demand persists

• Initial support at 160.47-51 (200-hour MAs)
USDJPY hourly chart


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