USD/JPY drops in sync with USD amid risk-on market profile

USD/JPY drops in tandem with the US Dollar in the early Asian hours on Monday, following the risk-on market profile amid renewed optimism over the likely end to the US-Iran conflict. The peace talks are going on between both sides and an agreement could be reached in the coming hours. Traders are on high alert as the pair moves within the 160.00 critical level, which is widely considered a "line in the sand" where Japanese authorities are expected to step in to conduct foreign exchange interventions. Finance Minister Satsuki Katayama said last week that Japan stands ready to act against excessive foreign exchange volatility at any time, while ensuring that any intervention is conducted in a way ‌that avoids pushing up US Treasury yields.