Will the USD/JPY, which plummeted following intervention, be able to hold above the 160-yen level?

Will the USD/JPY, which plummeted following intervention, be able to hold above the 160-yen level?

31.07.2026 New

In the U.S. currency market the previous day, the U.S. dollar plummeted against the yen amid growing speculation about yen-buying intervention. The dollar-yen exchange rate fell by about 5 yen, from the upper 163-yen range to around 158.34 yen, marking a 2.4% decline from the previous day.The U.S. dollar was also weighed down by the preliminary estimate of U.S. real gross domestic product (GDP) for the April–June quarter, which came in at an annualized 1.5% quarter-on-quarter—below market expectations of 2.0% and the previous quarter’s 2.1%.During Asian trading hours today, the pair rebounded to around 160.76 yen, and resistance is likely to be seen around 161.00 yen, while support levels are expected around 160.00 yen and 158.30 yen.

In European currency markets, the Bank of England (BOE) left its policy rate unchanged at 3.75%. The Monetary Policy Committee (MPC) voted 6 to 3, with three members advocating for a rate hike to 4.00%.Meanwhile, the view was expressed that there are currently limited signs that high energy prices are spilling over into inflation and wages, causing expectations for further rate hikes to recede somewhat. The pound pared its gains following the announcement, with GBP/USD trading around $1.3370 and EUR/GBP around 0.8585.During Asian trading hours today, the GBP/USD pair has rebounded to around $1.3460, with resistance likely around $1.3500 and support around $1.3370.

Today’s economic indicators include Germany’s July unemployment figures and unemployment rate, to be released at 4:55 p.m., and the preliminary July Harmonized Index of Consumer Prices (HICP) for the eurozone, to be released at 6:00 p.m. The HICP is expected to come in at 2.9% year-over-year, while the core index is forecast at 2.4% year-over-year.At 19:00, the results of foreign exchange intervention for the period June 29 through July 29 will be released; however, the sharp appreciation of the yen seen the previous day will not be included in this report.At 9:30 p.m., the U.S. Employment Cost Index for the April–June quarter and Canada’s May Gross Domestic Product (GDP) are scheduled for release, followed by the U.S. Chicago Purchasing Managers’ Index for July at 10:45 p.m. In addition to price trends in the Eurozone and U.S. labor costs, investors should also pay close attention to price movements in the USD/JPY pair following speculation about intervention.