USD/JPY Nears 160 as Yen Intervention Risks Intensify Ahead of BoJ June Meeting

USD/JPY has climbed toward the 160 intervention threshold, trading near 159 amid persistent US-Japan rate differentials and rising Treasury yields. The pair's advance follows a sixth straight day of gains and comes despite roughly 10 trillion yen in recent Japanese intervention outlays. Markets now price an 80% chance of at least a 25bp BoJ rate hike on June 15-16 after Governor Ueda and Deputy Himino signaled further normalization while cautioning on Middle East oil shocks. Major banks including BofA and Deutsche have cut end-2026 forecasts to 152 and 150, arguing intervention alone cannot sustainably strengthen the yen without policy tightening. Analysts warn any unilateral FX defense will likely prove temporary absent BoJ support.