Yen Intervention Rally Faces High Hurdle at 155 to the Dollar

The yen’s failure to breach 155 to the dollar after repeated cases of suspected intervention by Japan is raising questions over the durability of the currency’s recent advance.

Multiple sharp rallies since April 30 have all petered out short of this mark before reversing some of the gains. While authorities in Tokyo have sufficient reserves to continue intervening, the price moves suggest firm demand for dollars and limits to Japan’s capacity to turn the tide in favor of the yen.