This Week's Market — Tuesday, August 5, 2026

Following last week's decline — triggered by FX intervention — USD/JPY dropped into the 155 yen range. It then edged gradually higher, but yen buying emerged after U.S. Treasury Secretary Bessent remarked that "sustaining the effect of the intervention will require additional measures" and that he was "confident Governor Ueda will take the necessary steps," reiterating his call for a rate hike. Still, the chart pattern looks set to form a narrow range, with support holding firm. Intervention risk remains a concern, but if the pair continues to find support here, one has to wonder whether it could push up another leg toward around 159 yen. The key levels to watch are whether it breaks below 157.15 or above 157.95. Today brings the ADP employment report, with the U.S. jobs report due at the end of this week. While staying alert to sharp swings — and with intervention risk still in the background — appetite for buying USD/JPY remains strong, so buying around the support line may well continue for now.