The American currency is losing some ground ahead of the weekend.
USDJPY managed to hit a fast drop after the Bank of Japan threatened to intervene in the market to back up the currency. As we see from the chart, prices managed to test the trend support around 155.60 which could lead to a trading zone towards the resistance at 157.50-70.
We saw the USD/JPY dip again this morning, but it has since bounced back after again finding good support at just below the 156.00 level. Alongside what looked like fairly sizeable dollar-selling from the Bank of Japan yesterday, you also had a decent push higher in equities, which only added to the softer tone in the dollar more broadly, while the dip in oil prices yesterday also clearly helped.
USD/JPY dives to 155.50 lows on another alleged intervention
The USD/JPY pair dropped 450 pips after suspected Bank of Japan intervention near the key 156 level, with analysts leaning bullish on the dollar longer-term but advising patience before entering a position.
USD/JPY Price Forecast: Holds above 157.00; bulls seem hesitant amid intervention fears
Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 159.45. There was a close below 158.00, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The yen eased slightly against the dollar on Friday, but was still poised for its steepest weekly gain in more than two months after Japanese authorities stepped in to lift the currency from near two-year lows.
Earlier in the week I noted the stark difference in price from this week's ‘hawkish' Kazuo Ueda and what we saw in January. A few months ago when the BoJ head highlighted that more rate hikes might be on the way, USD/JPY unfurled to the tune of 700 pips over a three-day period, eventually finding support at the 151.95-152.50 zone.
After trading within a rather constrained range for much of April 2026, the USD/JPY pair registered a significant decline on April 30, dropping about 2.5% and slipping below the 158 threshold. This sudden shift has prompted questions about whether the long-dominant uptrend in the dollar-yen pair is beginning to reverse.
Fawad Razaqzada, FOREX.com UK Market Analyst, breaks down the USD/JPY shock move after Japan's confirmed FX intervention triggered a 500 pip reversal. Despite the sharp selloff, underlying macro forces including wide rate differentials and rising U.S. rate expectations continue to support dollar strength.
Well, you can't say you didn't see that coming. The noise around FX intervention out of Japan had clearly picked up over the past few sessions, and not without reason.