Japan and U.S. Could Intervene Again if Yen Weakens Back Toward 163

Japan and the U.S. could reportedly intervene in the currency market again if the yen weakens back toward pre-intervention levels near 163 per dollar.
Former top Japanese FX diplomat Takehiko Furusawa says coordinated action could occur again at any time, with USD/JPY currently around 159.4 compared with the 163.73 level that triggered July’s intervention.
Furusawa also expects the Bank of Japan to raise interest rates in September and potentially hike again by January.
He sees the BOJ moving toward a policy rate of around 1.5% over time.
With the yen still under pressure, markets are increasingly focused on both renewed intervention risk and a potentially more aggressive BOJ tightening cycle.