USD/JPY Holds Above 160 as Intervention Risk Climbs Before BoJ Meeting

USD/JPY remains pinned near 160.20 after briefly spiking to 160.22 on the stronger-than-expected May NFP print (+172K vs +85K). Tokyo renewed verbal intervention warnings following a record drop in foreign reserves in May, yet institutional short-yen bets have surged to $11 billion. Banks stay divided: SocGen targets 161.20-162.00 on widening yield spreads while Citi forecasts a year-end correction to 155. Attention now turns to the Bank of Japan’s June 15-16 meeting and today’s US CPI release, with traders balancing carry-trade flows against the threat of sudden official action.