USDJPY Stabilizes Near 157.00 Amid Inflation Data and Intervention Threats

The USD/JPY pair rebounded from two-month lows to trade above 157.00 during Friday’s Asian session, bolstered by softening Tokyo CPI data and a strengthening US Dollar. Despite this upward momentum, gains remain limited as Japanese officials continue to signal potential market interventions to curb Yen weakness. Technical indicators present a conflicted outlook; while the pair found support at the 61.8% Fibonacci retracement level and stayed above its 200-day EMA, bearish RSI and MACD signals suggest that recovery attempts may face significant resistance. Consequently, the market remains in a state of cautious consolidation, caught between supportive macroeconomic shifts and the looming threat of government action.

April was also exceptionally strong across Asian stock markets, with Japan’s Nikkei 225 jumping 16 percent, Taiwan’s Taiwan Weighted Index surging 23 percent, and South Korea’s KOSPI gaining nearly 31 percent over the month.