BoJ

The intervention may have delivered a sharp reversal, but the forces that drove USD/JPY higher haven't gone away. Until they do, betting against the broader trend remains a risky proposition.

Joint US-Japan intervention has distorted some of the dollar's strongest relationships this year. That leaves EUR/USD testing major resistance under highly unusual circumstances.

Coordinated intervention has pushed fundamentals and technicals into the background for now. The next chapter will likely be written by Friday's payrolls report.

The BOJ appears content to normalise policy gradually, but leaving rates unchanged has handed the initiative back to USD/JPY bulls. The problem is every push higher also increases the likelihood Japanese authorities step back into the market.

Intervention has already delivered a powerful lift for the Aussie and Kiwi. Whether that extends may depend on another round of official action and the Bank of Japan.

The US dollar slipped despite Fed dissent as traders priced out a second hike. Attention now turns to the BOJ, with USD/JPY and GBP/JPY in focus.

The bullish breakout played out exactly as anticipated last week. Now traders face a bigger question: can higher energy prices and widening policy divergence propel USD/JPY through 164?

The outlook for USD/JPY remains constructive as a hawkish Federal Reserve, resilient US dollar, and renewed geopolitical risks continue supporting the pair near the critical 160 area.

At the start of the week, USD/JPY is once again showing notable buying pressure. Over the last few trading sessions, the pair has posted an average gain of more than 0.7% in favor of the U.S. dollar, beginning to erase part of the recovery attempt seen in the yen during the previous week.

If not for the threat of intervention, there's a strong argument USD/JPY would already be trading significantly higher. We examine what's holding it back, and what traders should be watching in H2 2026.

Record yen short positions and a hawkish Fed have propelled USD/JPY to fresh highs, but with the pair testing key intervention levels, traders may soon discover whether Japan's Ministry of Finance is willing to act.

USDJPY Price Forecast: A hawkish Fed and stronger DXY keep pressure on the yen as USDJPY stabilizes near the critical 160 resistance zone, with 180 emerging as a long-term target.