USD/JPY Nudges Toward 160 as Dollar Strength Tests Intervention Limits

USD/JPY has climbed from sub-157 levels in early May to repeatedly test near 159-160 by late May. Resilient U.S. data, hawkish Fed pricing and U.S.-Iran geopolitical strains drove the advance despite strong Japanese Q1 GDP of 2.1% and softer April CPI. Hopes for a U.S.-Iran deal briefly eased safe-haven demand and capped gains, but the pair has resumed its uptrend and is now probing the 160 threshold previously defended by suspected Japanese intervention exceeding ¥5 trillion.