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USD/JPY steadies after Japan intervention-driven selloff

The pair remains above the 200-day moving average around 157.9, while traders wait to see if Japan intervenes again to support further yen gains.

Reported · Written up by our desk · Major Pairs

USD/JPY is consolidating within a wide range on Friday after falling more than 3% the prior day following intervention by Japanese authorities aimed at weakening the yen, Action Forex reports.

Price action is currently unfolding around the daily Ichimoku cloud, which spans 158.49 to 160.59, with Friday showing a long-legged Doji pattern that suggests traders are waiting for a new directional catalyst.

Despite Thursday’s surge through the cloud, USD/JPY did not manage a daily close below the cloud base at 158.49, leaving key supports intact, including a level near 157.91 tied to the 200-day moving average.

Technical studies have weakened, including a drop in 14-day momentum into negative territory and DMAs shifting toward a bearish setup, but the article says a sustained break below the cloud base and the 200-day moving average is needed to open the door to a deeper move and limit the risk of a rebound.

Latest closeUSD/JPY 157.40 ▼1.7%

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