USD/JPY briefly broke above ¥160, reportedly heightening vigilance over intervention. Market movements and speculation about the FOMC outlook have been cited as the backdrop, with attention said to be focused on movements around ¥160.
In the New York market on the 28th, USD/JPY fell to ¥159.41 before rising to ¥160.21 and reportedly closing at ¥160.09. The dollar was supported at times against the backdrop of U.S. economic indicators and remarks related to the Federal Reserve.
At the same time, the breach of ¥160 is said to have further heightened vigilance over currency intervention, with the authorities' efforts to deter further yen selling reportedly in focus.
Some market participants reportedly said that indicator trends suggesting expectations of a September rate hike are likely to be viewed as a factor supporting dollar buying. However, the prevailing view is said to be that intervention concerns will limit the upside.