Japan Warns on Speculative FX Moves as USD/JPY Holds Above 159

Japan’s chief cabinet secretary voiced extreme concern over speculative yen trading on May 29 as USD/JPY remained above 159, signaling readiness for intervention near the 160 threshold. The pair had surged to 159.04 after April CPI cooled to 1.4% YoY on May 22, easing near-term BOJ hike bets, then plunged to 148.20 when oil fell below $72 on May 25. Hawkish comments from Deputy Governor Himino on May 26 and Governor Ueda’s May 27 warning that energy shocks could turn persistent via wages restored tightening expectations, reversing most of the yen’s gains and keeping intervention risk elevated.