USD/JPY Holds Near 160 as Yen Shrugs Off Katayama FX Warning

On June 5, USD/JPY remained pinned near 160 despite Finance Minister Katayama’s renewed verbal warning that authorities stand ready to act against excessive volatility. The pair tested 160.04 earlier in the week after stronger US PMI data reinforced the wide US-Japan rate differential, while Tokyo has already spent ¥11.7 trillion since April defending the yen. Markets have lifted the odds of a Bank of Japan rate hike on June 16 to roughly 80 percent following Governor Ueda’s hawkish signals and 5 percent spring wage gains, yet the yen’s weakness persists absent a decisive breach or fresh intervention.