Bank of Japan Faces Struggle to Support Yen as USD/JPY Nears 160

The Bank of Japan (BoJ) is set to raise interest rates to a three-decade high at its upcoming June meeting, yet the Japanese yen remains under intense selling pressure. USD/JPY continues to trade above the 160.00 handle, just shy of multi-decade highs, despite the central bank's efforts to support the currency.

The paradox highlights the persistent rate differential between the US and Japan, which continues to weigh on the yen. The BoJ's tightening measures have so far failed to reverse the trend, leaving market participants skeptical of any near-term relief. The focus now shifts to potential intervention or forward guidance from the BoJ to stem the yen's decline.