Japanese Yen slides past 160 as Fed signals higher rates

The Japanese yen weakened against the U.S. dollar, trading around 160.66 JPY/USD after the Federal Reserve held rates steady but signaled at least one more hike before year‑end. New Fed Chair George W. Warsh emphasized the commitment to a 2 % inflation target and noted that the median forecast for the federal funds rate has risen to 3.8 % from 3.4 %.

Meanwhile, the Bank of Japan raised its short‑term rate by 25 basis points to 1 %, yet the yen did not appreciably strengthen. USD/JPY hovered near 160.47‑160.66, with the pair in the so‑called intervention zone. Traders watch resistance at 160.50, 160.73 and 161.00, while support lies at 160.00, 159.50 and the 50‑day moving average around 159.00. Market sentiment reflects a blend of risk appetite, divergent central‑bank policies and the potential for Japanese monetary‑authorities to step in if the yen falls further.