Fundamental Market Analysis for May 27, 2026 USDJPYUS Dollar/Japanese YenSAXO:USDJPYFresh-Forexcast2004USD/JPY is trading near 159.250 on Wednesday, May 27, remaining close to the zone that the market views as sensitive for Japanese authorities. The US dollar is supported by geopolitical tension and demand for defensive assets, but further growth in the pair is limited by the risk of currency intervention. An approach toward the 160 level increases the likelihood of more active action from Japan. An additional factor in favor of the yen is linked to expectations regarding the Bank of Japan. Governor Kazuo Ueda warned that the energy shock could become more persistent amid high inflation expectations and wage growth. The market is already pricing in a high probability of a rate hike at the June 15–16 meeting, while Friday’s Tokyo inflation data may strengthen these expectations. Yen weakness persists due to Japan’s high dependence on imported energy, but the balance of risks near 160 looks unfavorable for new dollar purchases. Even with steady demand for the US dollar, the threat of intervention by the authorities and expectations of tighter Bank of Japan policy increase the probability of a downward correction in USD/JPY. Trading recommendation: SELL 159.250, SL 159.550, TP 158.350