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The Japanese yen is experiencing a significant decline against the US dollar, marking the seventh consecutive session of this trend. The USD/JPY pair is approaching the 156.40 mark.

The Japanese government is prepared to collaborate closely with the Bank of Japan on currency market issues. This partnership is crucial in avoiding disagreements on the goals of their policies, stated Shunichi Suzuki, the minister of finance, today. He noted that his ministry diligently monitors the currency and implements all necessary measures to maintain stability in the yen's exchange rate and alignment with fundamental indicators.

However, Suzuki did not specify any particular exchange rate values. He also provided little information about financial interventions conducted in late April and early May to support the yen.

After falling earlier to 160.00 per US dollar, the yen has steadily risen. However, it has once again come under pressure. Currency interventions have a limited impact and cannot create conditions for a fundamental change in the currency market environment.

The Japanese authorities are also concerned about the interest rate issue. Although no significant changes in the monetary policy structure are expected, the market closely monitors this issue.
 

USD/JPY Technical Analysis

The USD/JPY pair has completed a corrective wave on the H4 chart, reaching 156.16. Currently, a consolidation range is forming around this level. The price is expected to break below this range and continue the third decline wave, with a target of 151.40. Following this level, a correction towards 154.00 may initiate, followed by a decline to 149.00. This scenario is technically confirmed by the MACD oscillator, with its signal line above the zero level, indicating a potential decline to new lows.

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On the H1 chart, the USD/JPY pair has completed a growth wave at 156.16, with a narrow consolidation range formed around this level. Today, the price attempts to break above it, aiming for 156.66. The range extension towards 156.81 is not ruled out. It is worth noting that all growth structures are only perceived as the extension of this wave, with the market able to continue a downtrend at any moment. Technically, this scenario is confirmed by the Stochastic oscillator, with its signal line above 80, poised to move to new lows.

(Click on image to enlarge)

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