USD/JPY Tests 160 Again as Fed Risks Overpower Yen Intervention

On June 5, USD/JPY hovers near 159.80-160.00, repeatedly testing the politically sensitive intervention line after Japan’s record defense. The pair climbed back toward the threshold despite Tokyo spending ¥11.7 trillion ($73-74 billion) between late April and May, drawing reserves down roughly $75 billion. Softer Tokyo CPI, persistent Middle East tensions, elevated oil prices, and wide US-Japan rate differentials have kept speculative net-short yen positions near multi-month highs. Markets now focus on Friday’s US jobs data and BoJ signals as the next catalysts, with authorities warning they stand ready to act again.