USDJPY pulls back following verbal intervention signals

USDJPY retreated from a fresh ten-month high on Friday following comments from top Japanese officials that fueled expectations of potential intervention, as the yen had weakened sharply in recent weeks and approached levels where the central bank previously intervened.

Overbought conditions on daily charts also prompted profit-taking, although any pullback is expected to remain shallow, as market expectations suggest direct intervention is unlikely while the pair stays below 160.

The dollar remains firm in the post-NFP session, supported by growing optimism that the Fed will keep interest rates on hold at the next meeting.

Price action continues well above the first Fibo support at 155.88 (23.6% of 149.37/157.89), with any deeper retracement likely finding support around the rising 10DMA (155.42) and the broken upper boundary of the bull channel (154.76) as well as Fibo 38.2% (154.63).

The pair is on track for a strong weekly gain, though the upper shadow on the weekly candle signals that bullish momentum may be slowing. Nonetheless, the broader bullish bias remains intact, favoring a fresh push higher after a limited correction, with the 160 level still in sight as a potential trigger for intervention.

Res: 157.53; 157.89; 158.20; 158.87
Sup: 156.44; 155.88; 154.76; 154.63