Japan may have bought 3.50 trillion yen intervention, analysts: the dollar against the yen may still challenge the 158 mark

foreign exchange documentaryplatform- On Thursday (May 30), the dollar/yen rose to 157.61, peaking at 157.67. According to Bloomberg, the yen exchange rate broke through the level that triggered suspected intervention. The article sent a heavy signal that the Japanese authorities may have stepped in to buy 3.50 trillion yen.

The yen's fall to a certain level has triggered the latest round of suspected hedging actions in Japan, highlighting the limited effectiveness of intervention in the market.

USD/JPY surpassed the closely watched 157.52 mark, and the yen strengthened significantly on May 1.

Japanese authorities have not yet confirmed whether they bought yen at the time, but according to the Bank of Japan's commercial bank deposits andbrokerBy comparison, Japanese authorities may have bought about 3.50 trillion yen, or about 22 billion dollars.

Japanese Finance Minister Shunichi Suzuki has repeatedly said that he is paying close attentionforeign exchange marketHowever, the rate of change in the yen exchange rate has slowed down from a month ago, and Japan needs to be vigilant against any countermeasures from its trading partners.

Forex Platform- US Treasury Secretary Janet Yellen reiterated that currency intervention should be a rarely used tool and that officials should give reasonable warning when resorting to intervention, suggesting that Japan may now have a harder time accessing markets. She said earlier this month that the G7 had agreed not to adjust exchange rates unless extreme volatility could be curbed.

Marito Ueda, head of market research at SBI Liquidity Market Co., said: "Given Yellen's recent comments, it may be difficult for them to step in when the pace of yen weakness is slow. Against the backdrop of surging global yields, higher-yielding currencies could strengthen, continuing to weigh on the yen."

USD/JPY technical analysis

FXStreet analyst Christian Borjon Valencia said that after breaking through resistance at the May 23 high of 157.19, the USD/JPY resumed its upward trend, but as the pair rose moderately to the 158.00 mark, buyers seemed cautious.

Momentum remains on the buyer's side, with price action above Ichimoku Cloud (Kumo), Tenkan-Sen above Kijun-Sen, and the Relative Strength Index (RSI) in bullish territory.

If the USD/JPY strengthens further, it could challenge 158.00.

Once it breaks through, the next stop will be the April 26 high of 158.44, then 159.00. Further gains remain to be seen, such as the year-to-date (YTD) high of 160.32.

On the contrary, if sellers enter the market and push the price below 157.00, it could pave the way for further declines.

In this case, support is at 156.48 in Kijun-Sen, followed by 156.25 in Senkou Span A, and then 156.05 in Tenkan-Sen.