USD/JPY has reportedly regained the ¥160 level since the coordinated intervention. Attention is expected to focus on developments at the G20 meeting and the outlook for US interest rates.
On Friday the 28th, USD/JPY rose approximately 0.4% on a closing-price basis and reportedly regained the ¥160 level for the first time in some time since the Japan-US coordinated intervention. Market focus is reportedly shifting to whether the currency pair can maintain this level and how its trading range will develop going forward.
As supporting evidence for this report, the amount of foreign exchange intervention from 30 July to 26 August was reportedly ¥15.3993 trillion, the largest monthly amount on record. In connection with this, comments by US Treasury Secretary Bessent were released, and concerns about the impact of Japan’s yen intervention on global markets were reportedly raised.
The Federal Reserve chair reportedly suggested the possibility of an early rate hike at an event in Georgia, although it was also reported that the chair said the remarks should not be interpreted as forward guidance. Against this backdrop, views were expressed that market pricing for a September rate hike had increased somewhat.
As for the outlook for USD/JPY, whether it can remain in the ¥160 range is likely to be the focus today, and attention is reportedly also focused on developments during the G20 meeting of finance ministers and central bank governors.