USD/JPY continued to trade near recent highs around 161.45 in Tuesday’s early Asian session. The US ISM Manufacturing PMI was weaker than expected, declining to 48.5 in June from 48.7 in May. The potential FX intervention from Japanese authorities might cap the pair’s upside. The modest recovery of the Greenback provides some support to the pair.
analysts said “USD/JPY continued to trade near recent highs. This is also near the highest level since 1986. There are expectations that Japanese authorities could soon intervene. While the level of JPY is one factor to consider, officials also focus on the pace of depreciation as the intent of intervention is to curb excessive volatility.” Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen is one of the world’s most traded currencies.