USD/JPY: Yen Tumbles Beyond 156.50 in Fourth Day of Losses, Dollar in Attack Mode Again

Greenback pressured the yen once more, erasing another line of progress from Japan officials who are desperate to save their currency.

• The USDJPY pair ticked higher Tuesday morning with forex traders pushing to the upside for a fourth day in a row. The dollar was buying as much as ¥156.50 yen after floating near the ¥153.50 mark just last week. The yen appears to be — once again — in the grip of the greenback as Japan officials scramble to protect it from the vicious attacks of currency speculators.
• Less than a month ago, Japan’s policymakers stepped into the forex space with a huge $60 billion buy order in a bid to bolster the yen. The effect was brief — a few days after the yen had gained about 5% against the dollar, markets were piling their short yen bets and chipping away at the progress made. In another wave of buying, the dollar-yen is now eyeing immediate double-top resistance at ¥156.80.
• With that steady rise, Japanese officials could decide to intervene at any moment and try to suppress the gains. But if they try and fail, markets may become even more determined to jump to fresh multi-year highs, breaking above late-April’s ¥160.20. On the economic front, forex traders will be looking to the latest Federal Reserve minutes, slated for release on Wednesday.