USD/JPY: Verbal intervention as pair nears 160 – MUFG

FXStreetNov 12, 2026 8:57 AM

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Lee Hardman at MUFG notes that USD/JPY has rebounded toward 160.00 as the stronger US Dollar and hawkish Fed repricing unwind September’s BoJ-driven correction. Japanese officials have stepped up verbal intervention, signalling readiness to act again, while MUFG still expects the BoJ to maintain a faster quarterly pace of hikes in December despite dovish comments from board member Asada.

Japan signals readiness to act again

"The hawkish repricing of Fed rate hike expectations and stronger US dollar have resulted in USD/JPY rising back to within touching distance of the 160.00-level for the first time since the start of September."

"With USD/JPY moving back towards pre-joint intervention levels from late July/early August, it has prompted Japanese officials to step up verbal intervention overnight to support the yen. Japan’s top currency official Atsushi Mimura stated overnight that “I have a strong impression that the currency moves over the past few days have been too fast”. He added that “it’s too early to forget what happened this summer”."

"It sends a strong signal that Japan is prepared to intervene again to support the yen which should help to limit further upside for USD/JPY beyond 160.00."

"However, it will be even more difficult to reverse the upward trend for USD/JPY right now with the USD strengthening broadly on the back of expectations for faster Fed rate hikes. If the rising risk of further intervention helps to stabilize USD/JPY while the US dollar continues to strengthen more broadly it could see non-USD yen crosses moving lower."

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

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