USD/JPY Recovers to 160.60 After Suspected BOJ Intervention

USD/JPY bounced back to 160.60 during Friday’s session, recovering from a steep decline the previous day that traders attributed to potential yen-buying intervention by Japanese authorities.

While the Bank of Japan has not officially commented, the sharp intraday drop on Thursday fueled speculation of covert action to stem the yen’s weakness. The pair’s quick recovery suggests resistance from dollar buyers and skepticism about the sustainability of the intervention effect.

Market focus now shifts to upcoming Japanese inflation data and any informal signals from Tokyo, which could clarify whether authorities intend to defend a specific level.