USD/JPY Hits 162.78 40-Year High as Yen Weakens Further

USD/JPY reached a fresh 40-year high of 162.78 on July 1, extending gains from 161.97 on June 29 and 162.41 on June 30. Persistent yen selling reflects U.S. yield advantages and Fed hawkishness while the Bank of Japan remains cautious. Japanese officials have signaled readiness for bold intervention, with markets now eyeing low-liquidity windows around the U.S. July 4 holiday and upcoming jobs data for potential action. Technical breaks above 161.94 have confirmed the uptrend, keeping near-term targets at 163.15-163.50.