USD/JPY has fallen to its weakest in 40 years, putting traders on alert for
Japanese authorities’ next “line.” After the pair broke 162, market participants
increasingly view 163 and above as the next key threshold; strategists say the
Japanese finance ministry may tolerate a weaker yen more than during 2024’s
intervention. Market positioning and this week’s US nonfarm payrolls could push
the yen quickly toward those levels. Nikko Securities senior FX and rates
strategist Takato Maruyama said 163 is the next level to watch and that
intervention concerns helped keep the yen firmer after the Fed meeting — without
those worries USD/JPY might already be trading around 163–164.