It’s all about whether a further rise will cause Tokyo to intervene at this point. It’s mostly a psychological game, you can even think of it as a game of chicken. Do buyers have more determination or does the blame fall on the Japanese authorities instead? The thing to watch is whether or not this move will continue So far, so fast.
USD/JPY daily chart
In April, it took just two days to jump from 155 to 160. This time, the step takes about four weeks. But we returned to the main threshold again anyway.
The overnight high reached 160.87 and the price is now trading back to 160.30 levels during the day. So, we don’t see buyers running away from things yet. There is definitely some caution in the air. But all other things being equal, it seems likely that buyers will continue to gradually try to test the limits here. That is until Tokyo decides to intervene again.