Yen slides toward 158 as intervention watch intensifies

The yen has weakened 1% over the past week to near 158 per dollar, putting traders back on intervention alert after Japanese authorities spent tens of billions defending the currency above 160 last year. Rabobank forecasts USD/JPY at 158 in three months but 152 in six months, assuming Fed easing narrows yield differentials. The carry trade logic remains intact with Japanese 10-year yields under 2% versus US Treasuries in the mid-single digits. Any intervention now would need to be massive to deter speculators who have seen this playbook twice before.