Japanese yen weakness is accelerating against the US dollar as USD/JPY pushes toward critical resistance at the 162 level, matching peaks last seen in 2024, according to Societe Generale currency strategist Kenneth Broux. The pair bounced sharply after defending a multi-month trendline near 157.40 and has broken through recent consolidation patterns, signaling renewed momentum in dollar strength.
Traders should monitor the 162 zone closely as a breakout above this level could trigger fresh yen selling and potential intervention concerns from Japanese authorities. Immediate support sits at 159.65 to 159.10, representing the near-term floor for the current uptrend. The technical picture suggests the dollar rally remains intact despite recent pause attempts.
This move affects currency pairs across Asian markets, yen-denominated assets, and traders positioned for yen strength. Japanese exporters may benefit from continued weakness while importers face rising costs.
FXnCO Insight
Watch for heightened volatility near 162 as this level could prompt either profit-taking or accelerated yen selling, with Japanese intervention risk increasing substantially above this threshold.
Source: FXStreet