USD/JPY dips but bears lack conviction as rate gap offsets intervention risks
USD/JPY edged lower during Thursday's Asian session, breaking a four-day winning streak, but the decline lacked bearish conviction as the yield differential remains a key support.
The Japanese Yen attempted a slight recovery during the Asian session on Thursday, pushing USD/JPY below the mid-162.00s and snapping a four-day winning streak. Despite the dip, the pair remains near four-decade highs and lacks clear bearish momentum.
Traders remain hesitant on the Yen side. The wide US-Japan interest rate gap continues to underpin the dollar, even as Tokyo's intervention rhetoric warns against excessive yen weakness. This tug-of-war leaves USD/JPY stuck in a narrow range, awaiting a catalyst.
Spot prices are currently just below 162.50, still within striking distance of the multi-decade high. Without a decisive break, the near-term outlook remains neutral-to-bullish for the dollar.
Source: FXStreet Forex News