EUR/USD, GBP/USD Flat as USD/JPY Holds Above 163.00 at 40-Year High

The U.S. dollar opened the North American session largely unchanged, with the three most actively traded pairs — EUR/USD, USD/JPY, and GBP/USD — each moving less than 0.7% from the previous close. USD/JPY remains the focal point after reaching a fresh 40-year high of 163.238 yesterday, surpassing the prior July 1 high at 162.833. During Asian trading, the pair briefly dipped to 162.80 but quickly rebounded above 163.00 as buyers stepped in, reinforcing the significance of the 163.00 level as near-term support. The persistent yen weakness reflects the widening interest rate differential between the Federal Reserve and the Bank of Japan, with U.S. yields remaining elevated. EUR/USD and GBP/USD are consolidating in narrow ranges, suggesting the market is awaiting fresh catalysts. Traders should monitor the 163.238 high in USD/JPY as immediate resistance, with a break above potentially opening the door to further multi-decade highs. Intervention risk from Japanese authorities remains a key consideration at these elevated levels.