USD/JPY: Intervention risk and BoJ path guide downside – OCBC

FXStreet Insights Team FXStreet

OCBC strategists Sim Moh Siong and Christopher Wong note that USD/JPY’s sharp pullback after breaking 160 likely reflected real Japanese Yen (JPY)-buying intervention in thin Golden Week liquidity. They expect defending 160 will require larger action if Oil stays high, sees potential for the pair to trade in a 150–155 range near term, and keeps its end‑2026 USD/JPY target at 155 with a June BoJ hike likely.

Authorities lean against 160 while BoJ lags

"The sharp pullback after breaking above 160 drew market attention."

"Defending 160 will require larger action, especially if oil prices remain high."

"Further intervention could push USD/JPY into the 150 to 155 range, lifting Asian FX in the near term."

"Still, we remain cautious and keep our end-2026 USD/JPY target at 155."

"A June BoJ hike now looks likely, but policy still appears behind the curve, limiting JPY support."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

Ripple Price Forecast: XRP extends technical weakness despite whales increasing exposure

Ripple (XRP) declines for a second day in a row, trading around $1.07 at the time of writing on Tuesday. The remittance token has continued to sustain a bearish outlook, aligning with the broader cryptocurrency market.

Volatility waits for fresh catalyst ahead of US-Iran 'talks'

EU mid-market update: SpaceX and AMD to report after the close; Volatility waits for fresh catalyst ahead of US-Iran 'talks'. - Middle East and energy drives sentiment still.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.