The Japanese Yen appreciates against the US Dollar on Friday, as the currency pair halts a four-day winning streak following new verbal intervention warnings from Tokyo, leading to slight profit-taking. The Japanese Yen appreciates against the US Dollar on Friday, as the currency pair halts a four-day winning streak following new verbal intervention warnings from Tokyo, leading to some mild profit-taking. Currently, the pair is trading at approximately 156.54, experiencing a slight decline from Thursday’s nearly ten-month peak of around 157.89, yet it remains on track for a second consecutive weekly gain.
The Japanese Yen gained ground on Friday as new intervention alerts from Tokyo led to minor profit-taking in USD/JPY. The currency pair retreats from its recent ten-month peak near 157.89, yet it is still positioned for a consecutive weekly increase. Technical indicators are starting to suggest a possible cooling phase, as momentum seems to be easing; nonetheless, the overall uptrend continues to hold strong. Japan’s Ministry of Finance has highlighted that officials are ready to take action in light of significant currency fluctuations, reflecting growing concern over the pace of Yen depreciation. The alerts come as the Yen hovers near levels that triggered earlier actions by Tokyo. Simultaneously, the Governor of the Bank of Japan, Kazuo Ueda, has acknowledged that the weak currency is contributing to rising prices, intensifying speculation that policymakers might consider the possibility of tightening policy as soon as December.
From a technical perspective, the currency pair is showing early signs of fatigue after its inability to maintain levels above 157.50, with Friday’s pullback indicating the beginning of a cooling phase following a robust rally. The daily chart shows that price is pulling back from elevated levels, as the Relative Strength Index (RSI 14) decreases from around 70 to roughly 66. This indicates a diminishing upward momentum, although it does not necessarily signal a total turnaround. Momentum remains above the neutral point and has begun to decline, indicating that buying pressure is still evident but gradually diminishing.
The overall trend structure, nonetheless, remains favorable. The pair is currently situated well above the important moving averages, with the 21-day Simple Moving Average close to 154.30 acting as the first level of dynamic support, followed by the 50-day SMA around 151.60. If these zones hold steady, any declines are likely to attract fresh buying enthusiasm. Initial resistance is currently observed at Thursday’s high near 157.89, followed by the psychological level of 158.00. A decisive close above this zone would reopen the path toward the 160.00 area — a level closely watched by traders due to the heightened risk of official intervention.