USD Holds Firm as USD/JPY Tests Key 160 Intervention Zone

The US dollar still looks supported mainly because of the strong move in USD/JPY. The 160.00 level remains a key focus, as traders believe the Bank of Japan and the Ministry of Finance of Japan could step in if the yen weakens too much. A similar intervention happened in 2024 near this level and helped stabilise the yen, partly supported by softer US inflation data at that time.

However, there is also a risk that authorities may allow the pair to move higher, just like in 2022 when the earlier defence level around 145.00 eventually failed, and price continued rising toward 150 and above.

Technically, the US Dollar Index is forming an ascending triangle on the daily chart. Buyers are slowly pushing closer to and even slightly above 160.00. This keeps the possibility open for a breakout. If no intervention occurs soon, the next possible defence zones could be around 161.95 (all-time high) or even 165.00.

USD/JPY Daily Chart