**BREAKING: USD/JPY Volatility Signals Potential Test of 2024 Lows**
The Japanese yen experienced violent intraday swings against the US dollar Thursday, with USD/JPY spiking to 161.92 before plunging 86 pips to 161.06 and settling at 161.54, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The analysts warn the pair has scope to revisit its 2024 low, suggesting further weakness ahead for the dollar against the yen.
The sharp reversals indicate heightened market uncertainty and possible intervention concerns from Japanese authorities, who have previously stepped in to defend the yen at these elevated levels. Traders holding USD/JPY positions face increased volatility risk as the pair hovers near critical technical levels. The move comes as markets digest diverging monetary policy trajectories between the Federal Reserve and Bank of Japan, with Japan maintaining ultra-loose policy while the US keeps rates elevated.
**
FXnCO Insight
** Traders should tighten stop-losses on USD/JPY long positions and watch for potential Japanese intervention signals as the pair approaches 2024 extremes.
Source: FXStreet