The USD/JPY exchange rate remained stable around the 161.55 level during the early Asian session on Tuesday, reflecting cautious market sentiment amid intervention concerns and ongoing geopolitical developments.

According to FX Street, the pair's steady performance comes as Japanese authorities monitor currency movements closely, while tensions involving the US and Iran contribute to a cautious trading environment.

For Japanese investors, these dynamics underscore the importance of monitoring both domestic policy signals and international events, as they continue to influence FX market volatility.