USD/JPY Price Forecast: Holds above 157.00; bulls seem hesitant amid intervention fears

USD/JPY extended gains from the mid-155s, touching about 157.55 in the Asian session but lacked follow-through buying. Softer Tokyo inflation and a modest USD uptick are supporting the pair, while comments from Japan’s FX diplomat keep intervention risks alive and cap further JPY weakness. Technically, the pair has held above the 200-day EMA (around 155.21) after stalling near the 61.8% Fibonacci retracement of the Feb–Apr rally; however, momentum indicators (RSI near 40, MACD negative) point to lingering downside pressure. Near-term resistance sits at the 38.2% retracement (~157.48), then 158.73 and the 160.75 cycle high; supports include 156.47, 155.47 and 155.21, with deeper floors at 154.03 and 152.20. Overall, the market is cautious: upside possible but limited by intervention risk and mixed technical signals.