The 160 level is widely seen in markets as a line in the sand for potential official intervention

The yen is testing the 160 barrier on Friday, prompting pushback from Japanese officials.

The yen weakened to the critical 160-per-dollar mark briefly in early trades, hitting the level for the third straight session despite verbal warnings from authorities. The 160 level is widely seen in markets as a line in the sand for potential official intervention.

Japan is ready to respond appropriately at any time on foreign ​exchange and reserves the right to take decisive action against excessive volatility, Finance Minister Satsuki Katayama said on Friday.

The yen ​is now set for the fourth straight week of decline, a streak not seen since February, ⁠mostly wiping out the gains driven by intervention over the past month at a cost of $73 billion.

The critical question remains ​whether officials are willing to resume their battle against formidable macro headwinds including elevated energy prices and higher yields, ​wrote Tony Sycamore, market analyst at IG.

Previous intervention efforts in late April delivered only a fleeting impact, he said, and the dollar would need to sustainably weaken below 155 to inflict any meaningful damage on the prevailing uptrend.

Japan’s real wages jumped 1.9% in April from a year ​earlier, government data showed on Friday, marking a fourth straight monthly gain. The Bank of Japan, which will next review its interest ​rates on June 15-16, considers steady rises in wages and prices as essential conditions for any further rate hike.

The BOJ is expected to raise interest rates ‌unless ⁠a sharp escalation in the Middle East war upends markets, as rising fuel costs from the energy shock add to mounting price pressure in the economy, sources told Reuters.

The risk-sensitive Australian dollar was down 0.1% at $0.71265, and the New Zealand dollar held flat at $0.5867 with a 2% weekly advance.