The usd jpy weekly close is on track for its highest level since 1986, with the pair holding near 161.30 after a brief drop earlier on Friday.
Japanese Finance Minister Katayama said he was ready to take decisive action against speculative moves in the yen. As a result, USD/JPY fell to 161.00 from 161.70. However, the pair soon recovered and then traded around 161.30.
If the pair ends the week near that level, it will post its highest weekly close in four decades. Meanwhile, the market showed little fear of intervention threats, even ahead of the weekend. The source article said Japan has spent about $73 billion this year to defend the yen, but that has not stopped the move.
USD JPY Weekly Close Draws Focus
The source article said traders may treat a lack of action at current levels as a signal to push USD/JPY toward 165.00. However, it also said weekly closes may matter less than intraday highs. Notably, the Ministry of Finance is likely watching 161.99, which marked a brief high on July 1, 2024.
Starting that month, USD/JPY later fell to 140.00. Moreover, most of that decline came over five straight weeks from the start of July. The article also said the risk-reward for long USD/JPY positions looks poor at current levels, despite support from fundamentals.
Japan Officials May Step Up Warnings
The source article said this week’s hawkish press conference from Kevin Warsh gave the market reasons to buy dollars. At the same time, it said some in Japan may also be watching EUR/JPY. That pair remains in the narrow range it has held since November and sits near the middle of that band.
Looking ahead, the article said Japan may at least deliver a wave of yen-supportive comments next week. However, officials also had a chance to step in during low liquidity on Friday and did not act. The United States is on holiday, with stock markets closed.
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