Yen Gives Back Round Figure Recovered After Major Intervention

The yen's decline persists, with intervention gains steadily eroding. USD/JPY is currently trading near 160.00, and the yen has fallen for a fifth consecutive session, with the 160 round figure—once recovered after a sharp rebound following joint US-Japan intervention—coming under renewed pressure.

**Over Half of Intervention Gains Retraced**

According to market sources, this round of intervention had previously driven a sharp one-way appreciation in the yen, but recent losses have retraced more than half of those gains. The renewed breach of the 160.00 round figure signals that the intervention effect is rapidly fading, raising doubts in the market about the sustainability of relying solely on intervention to stabilize the currency. Reports indicate that some analysts have noted that even if the Bank of Japan raises rates subsequently, the supportive impact on the yen could be limited.

**Key Support Levels in Focus**

From a technical perspective, according to market analysis, the 159.00 level has consistently capped every pullback this month, with 158.00 below it forming the next support platform, while the 200-day moving average above 157.50 is viewed as the structural bottom support following the intervention. Should the yen weaken further, these support levels will be tested in sequence.

**Data Window May Shape BOJ Decisions**

Japan has recently released inflation and labor market data, which are seen as key inputs for the Bank of Japan's assessment of whether to act next month. The market is closely monitoring data trends to gauge whether BOJ rate hike expectations can provide fundamental support for the yen. However, with the dollar broadly firm, there is clear divergence in the market over whether monetary policy expectations alone can reverse the yen's decline.

Current exchange rate movements indicate that the short-term effects of intervention are being gradually absorbed. Whether the yen can stabilize at the 160 level will depend on whether upcoming data and policy signals can form a cohesive force.