Dollar-Yen Breaks 162 Level, JPMorgan Flags 163 Intervention Trigger
JPM•Dollar-yen broke through 162 for the first time since 1986, with strategists targeting 163 as the next intervention threshold. JPMorgan strategist Ikue Saito noted that stealth intervention triggers may now be set higher following limited effectiveness of prior operations.
1. Yen Weakens to Four-Decade Low
The yen slid past 162 against the dollar, marking its weakest level since 1986. Rapid dollar strength and positioning ahead of US payroll data accelerated the decline, pushing strategists to focus on 163 as the next key support level.
2. Rising Intervention Thresholds
Market participants now expect Japanese authorities to tolerate a weaker currency than during the record interventions of 2024. Despite repeated verbal warnings from Finance Ministry officials, prior jawboning failed to arrest the slide, shifting attention to higher intervention triggers.
3. JPMorgan's Stealth Intervention Outlook
Ikue Saito from JPMorgan Chase & Co. highlighted that stealth intervention triggers may be set above previous levels due to the limited impact of past operations. She pointed to stop-loss orders and option barriers around 162–162.50 as evidence of changing market dynamics.
