Japanese Yen: Markets eye 160 versus US Dollar on hawkish BoJ – Scotiabank

FXStreetJun 3, 2026 5:02 PM

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Scotiabank strategists Shaun Osborne and Eric Theoret note the Japanese Yen (JPY) is marginally stronger, with USD/JPY stabilizing just below the key 160 resistance area. They stress that intervention risk remains elevated as the pair approaches this psychologically important level. Markets are pricing meaningful Bank of Japan (BoJ) tightening by December, while RSI momentum stays bullish and the bank sees limited additional resistance above 160.

Yen steadies but intervention risk elevated

"The yen is up a marginal 0.1% vs. the USD and showing signs of stabilization just above key technical support (USD/JPY resistance at 160)."

"Near-term risk remains centered on official currency management (intervention) as USD/JPY approaches the psychologically important 160 level."

"Comments from BoJ Gov. Ueda have been hawkish, signaling that the policy rate was not in the neutral range."

"Markets are pricing about 22bps of tightening for the meeting, and nearly 50bps by December."

"For USD/JPY, we note the bullish momentum in the RSI and see little in terms of additional near-term resistance above 160."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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