USD/JPY Expected to Remain Below 162 as Intervention Concerns Limit Dollar Buying

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According to Michiyoshi Kato, senior advisor at Sumitomo Mitsui Trust Bank, the yen decline is expected to be limited to below 162 per dollar due to concerns of potential Japanese authorities' currency market intervention. Large options positions are concentrated around the 162 level, which draws market attention. While some market participants anticipate accelerated dollar gains if USD/JPY breaks through 162, concerns over intervention are currently restraining aggressive dollar purchases, Kato said.
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