USD/JPY Nears 160 as Markets Test Japanese Policy Credibility
Strategists warn that a decisive break above the 160 threshold would represent a credibility event rather than a mere valuation move, raising the odds of intervention and complicating global carry-trade positioning.
Analysts flagged that a move above 160 in USD/JPY would mean Japanese policy 'credibility falls further,' setting up a binary risk event for global funding markets and carry trades that have underwritten a broad swathe of risk-asset positioning.
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