Yen Reverses Asian Losses on Intervention Risks, USD/JPY Slides

The Japanese Yen reversed its modest Asian session losses against the US Dollar on Tuesday, with the USD/JPY pair attracting fresh selling pressure after a brief uptick to the 161.50 region. The currency pair turned lower for the second straight day as traders remain wary of potential intervention by Japanese authorities.

Intervention risks loom large after recent verbal warnings from Japanese officials, prompting market participants to pare back long USD/JPY positions. The move lower comes despite a lack of clear catalyst, highlighting the market's sensitivity to intervention threats near multi-decade highs.

Technical analysts note that a sustained break below the 161.00 handle could accelerate losses, though the broader uptrend remains intact absent official intervention.