Tokyo Can Afford Yen Defense, But Firepower Limited: USD/JPY Below 164
USD/JPY trades just below 164.00 after last week’s high stalled near that level. Analysts note Tokyo can still intervene but has limited duration for sustained defense.
The Japanese Yen edged firmer on Monday, with USD/JPY slipping 0.05% to trade just below the 164.00 handle. The move followed last week’s high that stalled a fraction below that level, suggesting selling pressure around the figure.
While Tokyo still has the financial means to defend the currency, the capability is time-limited. Reserves can fund intervention in the near term, but sustained yen selling pressure could exhaust those resources.
Market participants are watching for any official action or commentary as the pair hovers near levels that have historically drawn intervention.
Source: FXStreet Forex News