USDJPY steadies above 160 on looming intervention

USDJPY remains firm and holds above 160 level for the third consecutive day, despite repeated warnings from Japan’s officials about intervention.

Growing speculations about Fed rate hike this year continue to underpin the dollar that keeps the pair elevated and on track to retest 2026 high (160.72), where intervention in late Apri started.

Traders focus on US CPI release (Wednesday) as inflation is expected to rise further in May (4.2% f/c vs 3.8% Apr) that may further pressure the US central bank, although Fed is widely expected to stay on hold in next week’s policy meeting under new Chairman Warsh.

Technical picture on daily chart is bullish but overbought, suggesting that bulls may pause, with 160 marking initial support and daily Tenkan-sen (159.74) expected to contain and keep bulls intact.

However, daily Ichimoku cloud is narrowing and will twist on Friday, which may attract deeper pullback.

Res: 160.45; 160.72; 161.00; 161.95
Sup: 160.00; 159.74; 159.30; 159.00