The Japanese Yen (JPY) strengthened against the US Dollar (USD) on Friday, breaking USD/JPY’s four-day winning streak. This shift followed renewed verbal intervention warnings from Japan’s Ministry of Finance, which expressed increasing discomfort with the Yen’s rapid depreciation near past intervention levels, prompting mild profit-taking. USD/JPY is currently trading around 156.54, modestly down from Thursday’s near ten-month high of 157.89, though it is still set for a second consecutive weekly gain. Bank of Japan (BoJ) Governor Kazuo Ueda also acknowledged the weak Yen’s upward pressure on prices, suggesting policymakers might consider tightening policy as early as December.
Technically, USD/JPY is exhibiting initial signs of fatigue after failing to sustain above 157.50, with Friday’s pullback serving as the first cooling phase of its strong rally. While the daily chart shows the price easing from overbought territory (RSI 14 dropping from near 70 to 66) and momentum moderating but remaining positive, these indicate fading bullish momentum, not a full reversal. The broader trend structure remains bullish, with the pair comfortably above key moving averages. The 21-day SMA near 154.30 and the 50-day SMA around 151.60 act as dynamic support, expected to attract buyers on dips. Immediate resistance is at Thursday’s high of 157.89, followed by the psychological 158.00 mark. A decisive close above 158.00 would open the way to 160.00, a level closely watched for potential official intervention.
