As trading resumed after Japan's holiday, the yen's decline continued and USD/JPY has approached the key 160 level after two weeks of weakness. Strategists say that following the Bank of Japan's September rate hike, renewed depreciation would make 160 a critical test of Tokyo's tolerance for a weaker yen. Commonwealth Bank of Australia FX strategist Carol Kong said if U.S. Treasury yields keep rising and markets probe Japan's willingness to defend the currency, USD/JPY could soon break 160. A ra

2026-09-24

As trading resumed after Japan's holiday, the yen's decline continued and USD/JPY has approached the key 160 level after two weeks of weakness. Strategists say that following the Bank of Japan's September rate hike, renewed depreciation would make 160 a critical test of Tokyo's tolerance for a weaker yen. Commonwealth Bank of Australia FX strategist Carol Kong said if U.S. Treasury yields keep rising and markets probe Japan's willingness to defend the currency, USD/JPY could soon break 160. A rapid break would materially raise the likelihood of official intervention, particularly after recent reports the Bank of Japan has been conducting "exchange-rate checks".