USD/JPY Range Holds as Intervention Zone Caps Upside

USD/JPY is testing the 157.30 intervention zone, where previous BOJ/MoF action triggered sharp drops. Recent price action shows a pattern of sudden declines near this level, especially during early European trade when liquidity is thin.

In the short term, this creates a range between ~156 support and 157.30 resistance. Sellers may look to fade moves near 157.30, but this depends on continued intervention. On the downside, the 156 area has held multiple times, making it a key level for profit-taking or potential bounce setups.

From a broader view, fundamentals still favour USD strength. Rising US-Japan yield spreads and the energy backdrop support buying dips, as the US benefits from being an energy exporter while Japan remains vulnerable as an importer.

USD/JPY Daily Chart

Bottom line: Short-term price action is driven by intervention risk and low liquidity, but the bigger picture still favours buying dips rather than selling rallies. The 156–157.30 range is key, and the next move may be influenced by upcoming US data, especially non-farm payrolls.