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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.

BREAKING STORYBEARISH

Gold's Phase Two: Official Sector Buying Out of Beijing Underpins Precious Metals Bid

Strong July purchases by China's official sector, combined with technical analysis pointing to the completion of the current advance's first leg, reinforce the structural case for bullion as a reserve-diversification and credibility hedge.

China Gold Market data showed robust official sector accumulation in July, while precious metals strategists argue the first phase of the cycle is completing ahead of a second, potentially more aggressive leg. The bid is being reinforced by currency credibility concerns, notably around a yen approaching the 160 threshold.

SPECIAL REPORTBULLISH
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