NFP in Focus: USD/JPY Faces Intervention Risk While GBP/USD Momentum Fades

FX markets are quiet ahead of the US Non-Farm Payrolls report, but volatility expectations remain high, especially for USD/JPY and GBP/USD.

USD/JPY is still heavily influenced by BOJ intervention fears near the 158 level. Previous suspected interventions triggered sharp selloffs, making 158 a major resistance zone. Even if strong US data pushes the pair higher temporarily, downside risks remain elevated, with possible pullback targets around 155 and even 152 if intervention pressure returns.

USD/JPY Daily Chart

GBP/USD, on the other hand, is showing signs that its recent rally is losing strength. Price action has slowed after a strong recovery from April lows, and multiple rejection candles near resistance suggest buyers are weakening. Technically, the pair risks moving lower toward the 1.3450 support area, especially if US data strengthens the dollar.

GBP/USD Daily Chart

Bottom line: NFP is likely to be the next major volatility trigger. USD/JPY remains vulnerable to intervention-driven swings near 158, while GBP/USD is showing early signs of bearish reversal as bullish momentum fades.