USDJPY – Reassessing the Landscape Post Joint InterventionUS Dollar vs Japanese YenPEPPERSTONE:USDJPYPepperstoneThe major FX pairs may have lacked the volatility of other asset classes in recent weeks, with traders hampered by converging interest rate expectations for the next moves by the world’s biggest central banks across the remainder of 2026. However, for USDJPY things sparked into life on Thursday last week once the Federal Reserve rate decision from the evening before was in the rear-view mirror. A renewed push up towards the 164.00 level and multi decade highs was met with a coordinated response from US and Japanese authorities to strengthen the Japanese Yen (JPY), a move which initially took USDJPY down below 158.00. Then on Friday, after the Bank of Japan’s decision to keep rates unchanged for another month was announced, a second round of intervention was unleashed which capped the USDJPY rebound below 160.00 and ensured a close at 157.65, a weekly decline of 3.8%. Moving forward to the new week, the selling initially continued when Japanese finance minister Satsuki Katatama confirmed the joint US-Japan intervention campaign early on Monday morning. This took the popular currency pair down to 3-month lows at 155.23 before fresh dip buying pushed prices back up to current levels around 157.66 (0645 BST). The numbers suggested to be involved are mind blowing, with Tokyo rumoured to have spent over $55 billion on its own propping up its beleaguered currency (Bloomberg). Now, the challenge for traders is to judge what comes next, which could be tough given the uncertainty of whether further intervention is still a possibility. In this type of environment, a reassessment of the important technical support and resistance levels that could impact the direction of USDJPY prices moving forward could be a useful first step to take, especially as the down move stopped only 20 pips from the 155.03 level which is the low from May 6th (more on this below). Technical Update: Intervention Sees Tests of Long Term Support: Last week’s co‑ordinated intervention created increased USDJPY volatility, resulting in a sharp decline in price. This weakness, initially extended further to the downside on Monday, approaching a potential long‑term support focus for traders between 155.03/154.78. As highlighted by the weekly chart above, this potential 155.03/154.78 support zone corresponds to a combination of the May 2026 low and the 38.2% Fibonacci retracement of the entire April 2025 to July 2026 phase of price strength. After what has already been a sharp sell‑off over a relatively short period of time, traders may now be assessing whether this decline could extend further to break below support, or if a deeper recovery could establish itself. To help gauge the reaction it may be useful to identify and assess what could be the important support and resistance levels to monitor. Potential Support Levels: After an earlier intervention by Japanese authorities in late April, it was the low at 155.03 from May 6th that proved to be an important support, from which an extended phase of price strength emerged. Within technical analysis, a last correction low posted nearly three months earlier, such as the 155.03 May 6th extreme, may draw the attention of traders. When taken with the proximity of the long‑term 38.2% retracement at 154.78 this could identify the 155.03/154.78 area as the first key support zone. A closing break below 155.03/154.78 could lead to renewed downside momentum, shifting focus to the next potential support between 152.09/151.96 (January 2026 price low and 50% retracement), and possibly further if this in turn gives way. Potential Resistance Levels: To gauge key resistance levels, we could turn to the shorter‑term daily perspective shown below. The first resistance may prove to be 157.89 (Monday’s high), especially as at the time of writing (0645 BST) this level has capped Tuesday’s initial rally. Closing breaks above this previous failure high may now be required to open further attempts at price strength. Closing breaks above 157.89 could see the focus shift to 158.61 (38.2% retracement), and if this level also gives way on a closing basis, on toward 159.64 (50% retracement). The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. 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