USD/JPY Bullish Break Above 161.95 Signals Further Yen Weakness

We bridge the gap between financial information and actionable insight by providing unrivaled coverage on all asset classes and access to best-in-class tools. The decisive move above the long-standing 161.95 resistance suggests that bullish momentum remains firmly in place, with the pair entering a fresh medium-term impulsive advance despite increasingly forceful verbal intervention from Japanese officials.Interest rate differentials remain the dominant driver. The widening 2-year US Treasury-JGB yield spread continues to underpin dollar strength against the yen, as markets anticipate further policy tightening from the Federal Reserve, while the Bank of Japan remains relatively accommodative despite its latest rate hike.Japan’s domestic policies are reinforcing yen weakness.