USD/JPY holds steady amid US housing data, Japanese intervention woes

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• US housing starts rebound in July, though rising mortgage rates may hinder sector recovery.
• Japan’s Q2 GDP growth doubles expectations, but concerns over China’s economic slowdown loom.
• USD/JPY’s upward momentum may be limited by potential Japanese intervention and BoJ’s anticipated policy normalization.

USD/JPY aims higher but remains trading within a narrow range as threats of a possible intervention by Japanese authorities loom. Housing data from the United States (US) shows the construction sector stabilizing after the US Federal Reserve (Fed) lifted rates aggressively, dampening house demand. The USD/JPY is exchanging hands at 145.85 after hitting a daily low of 145.30.