Yen falls to a four-decade low as Japan’s authorities hold intervention but keep strong rhetoric

Japanese yen continues to weaken against the US dollar, as the US currency remains well supported by growing Fed rate hike expectations, while lack of real action from Japanese authorities to support their currency (intervention rhetoric remains unchanged), continues to deflate yen.

Break of former top of June 2024 (161.95) pushed the price above 162 mark, with 163+ extension seen likely if Japan’s authorities stay further on hold.

However, intervention threats remain high, as authorities continue to express their readiness to intervene at any time that would push the pair’s price significantly lower, but also aware of the monetary policy gap between the Fed and BoJ (in favor of US dollar) as well as latest more dovish tones from policymakers.

Immediate support lays at 161.85, followed by rising 10 DMA (161.58) and ascending 20DMA (160.90).

Res: 162.90; 163.57; 164.24; 164.50
Sup: 161.95; 161.21; 160.65; 160.00