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Yen strengthens after Japan intervention and hawkish BoJ stance
USD/JPY fell toward the 159.5 area after Japan intervened, while the BoJ left its rate at 1.0% and signaled it could accelerate future hikes.
The yen strengthened sharply on Friday, with USD/JPY trading near the 159.5 area after Japanese authorities reportedly intervened by buying yen and selling US dollars. The move followed USD/JPY climbing to multi-decade highs, and it triggered an abrupt drop in the pair, though FXStreet noted that price action remains highly volatile as markets weigh whether Japan will keep defending the currency.
FXStreet said the Bank of Japan held its short-term interest rate unchanged at 1.0%, as expected, with the decision approved by an 8 to 1 majority. While maintaining the rate, the BoJ reiterated it would continue raising borrowing costs if economic activity, inflation, and financial conditions evolve in line with its projections, and it indicated it could accelerate the pace and avoid falling behind the inflation outlook.
The outlet also pointed to mixed signals for the US dollar from geopolitical developments. It cited a Trump-announced agreement aimed at phased disarmament of Hamas and the eventual withdrawal of Israeli forces from Gaza, which could reduce some safe-haven demand for the greenback, while tensions around Iran remained elevated.
On the technical side, FXStreet reported USD/JPY around 159.12 with a bearish near-term bias, as the pair stayed well below the 20-period and 100-period simple moving averages clustered near 162.31 and 162.62. It added that the RSI near 25 sits in oversold territory, and that overhead resistance is seen around the 159.92 to 160.57 zone.
Latest closeUSD/JPY 157.40 ▼1.7%