The Japanese yen had staged a mild gain of 0.5% to print a 5-day high of 158.96 per US dollar ex-post the Bank of Japan's (BoJ) monetary policy meeting on Tuesday, 28 April 2026.
The US dollar continues to trend upwards following the Federal Reserve meeting, drawing support from the regulator's moderately hawkish stance and comments by Jerome Powell. Markets interpret the Fed's rhetoric as a signal that restrictive policy is likely to remain in place for longer, supporting higher yields and sustaining demand for dollar liquidity.
USD/JPY rises beyond the key 160.00 level, boosting intervention risks
USD/JPY surges to a 21-month high above 160, defying intervention risks as yen weakness intensifies. Rising oil prices and a widening US–Japan rate differential continue to drive upside pressure, reinforcing the pair's bullish momentum.
US bond yields surged and the US dollar was the strongest major currency on Wednesday after the Fed held rates and signalled just one 25bp cut ahead. While markets weren't pricing in any cuts beforehand, the shift in Fed funds projections can still be seen as hawkish relative to the Fed's prior outlook.
Rate cuts are in doubt for the US economy as Jerome Powell hosted his final rate decision atop the Fed, and that's helped to contribute to a US Dollar rally with the DXY basket re-engaging with the familiar 98.98 level.
USD/JPY surges to near two-year high after Fed's decision to deliver a hawkish hold
USD/JPY climbs to one-month high above 160 as Fed decision nears
The American currency is moving higher as traders prepare for Fed Interest Rate Decision.
USD/JPY has extended its advance in recent sessions, breaking out of consolidation and pushing back toward a key resistance zone near the yearly highs. The move reflects strengthening near-term momentum, but the broader outlook now hinges on how price reacts at this barrier.
USD/JPY is once again approaching the 160 level, putting markets on alert for potential Japanese intervention. The pair's steady climb, driven by rising oil prices and widening rate differentials, is turning this level into a key flashpoint for global FX markets.
USD/JPY Price Forecast: Remains below 160.00 intervention threshold ahead of Fed