The Japanese Yen (JPY) strengthened against the US Dollar (USD) on Friday, with USD/JPY snapping a four-day winning streak after renewed verbal intervention warnings from Tokyo triggered mild profit-taking.
At the time of writing, the pair trades near 156.54, pulling back from Thursday’s near ten-month high at 157.89, though it remains on track for a second straight weekly gain.
Japan Signals Discomfort With Yen Weakness
Japan’s Ministry of Finance reiterated that authorities stand ready to act against excessive currency moves, underscoring growing concern over the pace of Yen depreciation.
The latest warnings arrive as USD/JPY trades near historical intervention levels, heightening market sensitivity to further official commentary.
Meanwhile, BoJ Governor Kazuo Ueda noted that Yen weakness is adding upward pressure to prices, reinforcing expectations that policymakers may revisit discussions on tightening policy as early as December.
Technical Outlook: Rally Cools but Bullish Bias Intact
USD/JPY is starting to show early signs of fatigue after failing to sustain a break above 157.50, with Friday’s retracement marking the first cooling phase of an otherwise powerful uptrend.
On the daily chart, the Relative Strength Index (RSI 14) has eased from near 70 to around 66, pointing to softening momentum without confirming a bearish reversal. Momentum indicators remain above the zero line, suggesting buying pressure persists but is gradually moderating.
Despite the pullback, the broader trend structure remains firmly bullish. The pair continues to trade well above key moving averages, with the 21-day Simple Moving Average (SMA) near 154.30 acting as the first dynamic support, followed by the 50-day SMA around 151.60. Dips toward these zones are likely to draw renewed demand.
Immediate resistance stands at Thursday’s 157.89 high, followed by the psychological 158.00 level. A decisive close above this region would pave the way toward the closely watched 160.00 zone — an area where the risk of official intervention rises substantially.
