Japan faces renewed currency intervention pressure

Japan may soon be forced into another major currency intervention.

$USDJPY hit 163.991 today, putting it very close to the critical 164 level.

Earlier this year, Japan spent a record ¥11.7T, or about $73B, defending the yen.

That intervention triggered a sharp drop in $USDJPY, but the relief lasted only a few days before the pair resumed its climb toward fresh 40-year highs.

Japan still holds around $1.09T in foreign currency reserves.

But if the next intervention is going to have a lasting impact, the market may demand a much larger response than last time.

For $JPY, credibility is becoming the key issue.