The USD/JPY exchange rate surged past the 162.00 yen mark during the Asian session on Tuesday, reaching a fresh four-decade high, according to FX Street. This marks the strongest level for the pair in over 40 years.
Despite the sharp rise, expectations of potential intervention by Japanese authorities are believed to be limiting further gains, FX Street reported. Market participants remain cautious about how far the USD/JPY can extend without government action.
With the Bank of Japan maintaining its ultra-loose monetary policy, the yen has come under significant pressure, impacting FX and equity markets in Japan. Investors will be closely watching any signals from authorities in the coming sessions.