Is USDJPY Approaching An Intervention Zone?

USDJPY is back in focus after surging to 162.40, its highest level since 1986, putting the market dangerously close to levels that previously triggered intervention by Japanese authorities.

The move comes despite Japan spending nearly $74 billion in late April and early May to support the yen. With the currency continuing to weaken, speculation over another round of official intervention is steadily increasing.

At the same time, not everyone expects the rally to end here. According to a Bloomberg economic model, USDJPY could still climb toward 165.20 by the end of the year, implying further depreciation of the Japanese yen.

Traders should also keep an eye on this week's market conditions. US markets will be closed on Friday for Independence Day, reducing liquidity and potentially amplifying volatility. Japan has previously intervened during US holiday periods, making the coming days particularly important for USDJPY.