USD/JPY Closes Above 160 for the First Time Since April
160.33.
That’s where USD/JPY finished Monday — the first daily close above 160 since the late-April spike, and a line in the sand that matters both technically and politically.
The pair has now rallied for four straight weeks, from 156.85 in early May to Monday’s high of 160.39. Steady, persistent, almost boring — which is exactly how the carry trade prefers to work.
The euro quietly cracks
While the yen grabbed the headline, EUR/USD slipped through 1.16 and closed at 1.1523, its weakest finish since early June 2025. The pair has lost 2 cents since mid-May, and the selling has the hallmarks of institutional flow rather than speculative noise — steady, patient, indifferent to intraday bounces.
Sterling held up better, closing at 1.3336 after testing 1.3307. The pound remains the market’s preferred way to own G10 strength, but even sterling is being dragged lower by the broad dollar bid.
What 160 means
Technically, a close above 160.30 — the April spike high — clears the path toward 162. Politically, it puts Japanese officials in an awkward spot. Tokyo has historically resisted yen weakness beyond certain levels not because of economics but because of domestic politics. Expect louder verbal intervention this week.
The asymmetry is worth understanding. From here, USD/JPY can grind up 50 pips a day for a month, or drop 400 pips in an hour. Both outcomes are on the table, and only one of them lets you manage your risk calmly.
Disclaimer: This is market commentary, not investment advice. FX trading carries substantial risk of loss.
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