USD/JPY Steady; Intervention Risk Near 162, Scotiabank Says

Scotiabank's Shaun Osborne and Eric Theoret note that USD/JPY is trading steadily as markets await the Tokyo Consumer Price Index (CPI). Consensus forecasts point to a pickup in both headline and core inflation, potentially reaching the mid-to-upper 1% range.

The strategists highlight that the pair faces intervention risk near the 162 level against the US dollar. This suggests Japanese authorities may step in to support the yen if the exchange rate approaches that threshold, adding a layer of uncertainty for traders.