Aug 11 (Reuters) - FX traders should beware that Japanese authorities will likely be worried that USD/JPY is no longer trading below the Ichimoku cloud. The yen hovered near the key 160-per-dollar level on Tuesday as the impact of U.S.-Japan intervention continued to fade. USD/JPY is now stuck within the daily cloud, which currently spans 158.92 to 161.38. The pair rose 208 pips on Monday, the biggest one-day gain since December 2025, closing above the breached 158.56 Fibonacci level, which marks a 38.2% retracement of 163.99 to 155.20 intervention-driven slump. The scale of recent intervention and warnings of more action had increased the chances of a sustained move lower in USD/JPY. However, a return to trading consistently below the cloud is needed to reinforce that view. Conversely, a move above the top of the daily cloud would confirm a renewed upside bias and increase pressure on Japanese authorities to act.
Daily Chart


USD/JPY Daily Rise Table


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