Fundamental Market Analysis for May 1, 2026 USDJPYUS Dollar/Japanese YenSAXO:USDJPYFresh-Forexcast2004USD/JPY is trading around 157.250 after a sharp decline from levels above 160.00. The key factor for the pair remains intervention by Japanese authorities aimed at supporting the yen. Japan’s Ministry of Finance has warned that it is ready to act again against excessive currency movements, especially during the period of lower liquidity due to the holiday week. The US dollar retains fundamental support due to the interest rate gap between the United States and Japan, but this argument is now weakened by the increased risk of further action from Tokyo. The Bank of Japan kept its rate at 0.75%, but three policymakers supported an increase to 1.00%, strengthening expectations of more decisive steps at future meetings. The priority for USD/JPY is shifting toward a decline. Even if demand for the dollar remains, market participants may reduce positions in the pair due to the risk of repeated intervention and a possible Bank of Japan rate hike in June. Additional pressure on the dollar against the yen may appear if investors decide to take profit after the pair’s strong rise in April. Trading recommendation: SELL 157.250, SL 158.150, TP 154.550