Yen rose in Asian trade for the second session against the US dollar away from two-month lows, thus moving away from the 160 barrier.

The 160 barrier has become a red line for the Bank of Japan, around which itll intervene directly in the forex market to prop up the local currency.

The latest recovery is also boosted by a recent drop in US 10-year treasury yields ahead of important US data and speeches by Fed officials.

The Price

The USD//JPY pair fell 0.3% to 159.19, with a session-high at 159.70 yen per dollar.

The yen rose 0.1% on Monday against the dollar, inching away from a two-month trough at 159.93.

Bullish Stance

A collection of opinions and remarks by BOJ policymakers following the latest June meeting showed that several of them directly called for further interest rate hikes to control inflation.

The 160 Red Line

The 160 has become a red line for the Bank of Japan, after spending $60 billion in the forex market in late April to prop up the currency around that level.

Several analysts believe that Japan will directly intervene in the forex market to prop up the local currency, even with the threat of the US adding Japan to the forex watch list.

US Yields

US 10-year treasury yields fell 0.1% on Tuesday on track for the third decline in a row, pressuring the greenback.

Investors await important US data and speeches by Fed officials this week, which could impact the path forward for monetary policies.