#USDJPY: The 160 Zone Punishes Buyers AgainUS Dollar vs. Japanese YenFX:USDJPYStriforAnother attempt to push USDJPY back above 160 ended with a sharp strengthening of the yen. This area is once again proving to be more than just technical resistance — it has become a high-risk zone for carry trades. Not long ago, the United States and Japan had already carried out a rare coordinated intervention to support the yen. The fundamental issue, however, remains. The Bank of Japan's 1% policy rate still leaves a significant gap with U.S. interest rates and continues to support demand for carry trades. But the situation is gradually changing: the market is now pricing in a very high probability of another BOJ rate hike in September, while Japanese policymakers are increasingly signaling the need for further monetary policy normalization. Technically, USDJPY has been pushed back into the broad 153–158 range. After such an aggressive move, any attempt to recover toward 158–160 will be particularly important. This is where we may find out whether traders are willing to take the risk and rebuild carry-trade positions — or whether the latest decline in USDJPY has further to run.