The Japanese yen (USD/JPY) traded around 151.35 per US dollar on Monday morning, hovering close to a 32-year low of 152 yen per dollar hit in 2022. The threat of actual currency intervention by Japanese authorities prevented the dollar from rising further against the yen.

Last week, the yen briefly touched a four-month low of 151.86 versus the dollar. Japan’s top currency official stated on Monday that the yen’s current weakness does not reflect economic fundamentals, adding to recent verbal warnings from government officials about the yen’s decline.

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The yen has slid following the Bank of Japan’s interest rate hike last week, its first rate increase in years. However, markets expect rates in Japan to remain low compared to the United States for some time, keeping the gap between Japanese and US rates wide.

Traders view the intervention warnings from Japan as setting 152 yen per dollar as a strong near-term resistance level. Markets are aware actual currency intervention could occur if the yen breaches that level against the dollar.

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