The Japanese yen is approaching the yearly low. Strategists predict that the threshold for official intervention has increased.

The Japanese yen against the US dollar is hovering near the lowest levels of the year, and traders believe that this time the threshold for official intervention will be higher. On Thursday, the yen fell below 159 against the US dollar, approaching the level of 159.45 that triggered a so-called exchange rate review by the Federal Reserve in January. However, the situation has since changed. The rise in oil prices driven by the conflict in Iran and the strong performance of US economic data fundamentally boosted the US dollar exchange rate, which may make it more difficult for Japanese authorities to find reasons to intervene. "The threshold for intervention is now higher," said Rodrigo Catril, a currency strategist at the National Bank of Australia. "We believe that intervention is unlikely unless the US dollar against the yen shows a disorderly rise. The 158/159 area was the previous turning point, and we believe the new turning point may be around 162."