Japanese yen steadies near 160 as intervention risk looms

The yen held its ground on Thursday as USD/JPY edged lower in European trading, hovering around 159.40. The pair remains close to the psychologically important 160.00 level, keeping traders focused on the risk of official action from Japanese authorities.

The currency pair had registered minor losses in the previous session, but selling pressure on the dollar against the yen has been limited. Market participants appear cautious about pushing USD/JPY through 160.00 given the possibility of intervention.

With the pair near that threshold, the threat of Japanese authorities stepping in is shaping near-term positioning and keeping the exchange rate in a tight range.