■Market participants adjusted positions following the yen's historic weakness amid intervention speculation.
■Japan's stronger-than-expected retail sales figures provided temporary support for the domestic currency.
■The solana price prediction The ,000fundamental policy gap between Tokyo and Washington continues to shape medium-term expectations.
Thursday's Asian session witnessed the USD/JPY pair relinquishing partial gains after touching 160.85-160.90 levels unseen since the mid-1980s. While currently hovering near 160.50, analysts note the pair's resilience given the substantial interest rate gap between the two economies. The retreat reflects typical market behavior after significant moves rather than a fundamental shift in dynamics.
Monetary policy trajectories continue to diverge markedly. The Bank of Japan maintains cautious communication regarding its bond purchase strategy, while Federal Reserve officials recently reinforced expectations for prolonged higher rates. This policy contrast, combined with ongoing risk appetite in global markets, creates persistent headwinds for the yen that may limit the pair's downside potential despite short-term corrections.
Market participants remain attentive to potential currency intervention signals from Japanese authorities. Vice Finance Minister Kanda reiterated readiness to address excessive volatility that could harm economic stability. Meanwhile, Japan's 3% annualized retail sales growth for May offered modest yen support, triggering position adjustments in overextended markets. These factors contributed to the pair's retreat from multi-decade peaks.
Attention now shifts to upcoming US economic indicators including revised Q1 GDP figures, durable goods orders, and housing market data. Treasury yield movements will equally influence dollar dynamics ahead of Friday's Tokyo inflation data. The week's highlight remains the US PCE inflation report - the Fed's preferred price gauge - which could significantly impact rate expectations and currency valuations.
Technical Perspective
Market technicians identify 160.00 as immediate psychological support, with the 159.75 former resistance zone potentially offering additional buying interest. A sustained break below 159.00 could signal deeper correction potential. Conversely, the record highs near 160.90 present initial resistance, with a decisive move above 161.00 potentially reigniting bullish momentum and confirming the continuation of the pair's long-term uptrend.