Figure: USDJPY, H4 TradingView    Figure: USDJPY, H4 TradingView  

The USD/JPY pair came under heavy selling pressure after the Bank of Japan left its policy interest rate unchanged at 1%, while signaling that core inflation could rise above its 2% target in the coming months. This strengthened market expectations that the central bank may accelerate the pace of future interest rate hikes.

At the same time, reports of intervention by the Japanese authorities in the foreign exchange market to support the yen intensified market volatility. The pair plunged sharply after trading near the 163.00 level. Investors are now closely watching Bank of Japan Governor Kazuo Ueda's remarks for further clues on the timing and magnitude of future monetary tightening, which could determine the pair's next direction.

From a technical perspective, the pair experienced a sharp decline during today's session, falling to the 158.00 level and erasing nearly 10 weeks of US dollar gains against the Japanese yen. The recent sell-off also broke the ascending trendline, opening the door for a potential corrective rebound toward the 162.69–163.26 supply zone. Price action around this area should be monitored closely, particularly if accompanied by fresh headlines or another potential intervention by the Japanese authorities to support the yen, as per analyst analysis.