USD/JPY fell over 1.2% from its session high of 159.94, dropping back to 157.80 after Japan's top currency diplomat Masato Kanda issued a stern warning against speculative moves in the yen.
**BOJ intervention risk:**
- Finance Minister Shunichi Suzuki stated authorities are "watching currency moves with a high sense of urgency"
- The 160.00 level is widely viewed as the intervention trigger zone following BOJ's previous FX intervention in 2022 and 2024
- Japan spent approximately ¥9.8 trillion ($63bn) in its 2024 intervention operation
**Background:**
The yen has weakened significantly in 2025 due to the wide interest rate differential between Japan (BOJ rate: 0.10%) and the US (Fed rate: 5.50%). The BOJ is expected to raise rates cautiously, but markets are impatient.
**What to watch next:**
- BOJ policy meeting (June 14) — any rate hike signal would be strongly yen-positive
- US CPI (June 12) — softer data could weaken USD, easing USD/JPY pressure
- Direct intervention threshold: a close above 160 is considered high-risk
*Risk Warning: Yen pairs are highly volatile around BOJ meetings. Trade with caution.*