The Japanese Yen remained under heavy pressure as USD/JPY traded near multi-decade highs above 161. Traders continue to favor the Dollar due to the significant interest rate gap between the United States and Japan, despite recent efforts by the Bank of Japan to normalize monetary policy.

Earlier this month, the Bank of Japan raised interest rates to 1%, the highest level in more than three decades. However, investors remain skeptical that the pace of tightening will be sufficient to support the Yen against an increasingly hawkish Federal Reserve.

Market attention is now turning toward the possibility of direct currency intervention by Japanese authorities. Officials have repeatedly warned against excessive currency weakness, and traders remain cautious as USD/JPY approaches levels that previously triggered intervention measures.

Looking ahead, the pair's direction will likely depend on US interest rate expectations and any signals from Japanese policymakers. Elevated volatility could persist as traders navigate intervention risks and shifting monetary policy expectations.