USD/JPY Undergoes Heavy Selling Pressure for OANDA:USDJPY by NouzTrader — TradingView

USDJPY

This sharp downward correction was triggered by tactical panic among speculators who rushed to close their short yen positions (short covering) due to the threat of physical intervention by the Japanese monetary authorities.

————————————————————————————————————

✅ Weekend Scenario: Speculators “Lying Low” in Anticipation of MoF’s Stealthy Operation
The USD/JPY downward correction on Friday was driven purely by institutional risk management to secure capital before the market closes:

– Satsuki Katayama’s Combat Readiness: The Japanese Ministry of Finance (MoF) under Satsuki Katayama has radically shifted its operating mode to stealth intervention (secret intervention without verbal warning). With spot prices perched critically at 40-year highs, international fund managers are reluctant to hold positions overnight, which could be destroyed if Tokyo releases billions of dollars in liquidity to ambush the market during the quiet hours of the New York session closing tonight.

– Continued US Dollar Selloff: The US Dollar Index (DXY) also plummeted to a new weekly low, weighing on USD/JPY. The greenback was hit by continued profit-taking following the June FOMC Meeting Minutes, which confirmed a split within Fed officials, with policy frictions beginning to ease following the NFP data crash to 57,000.

————————————————————————————————————

✅ Technical Analysis 4-Hour Chart (H4)
– Technically, on the 4-hour chart (H4), USD/JPY’s fall below 162.00 confirms a short-term liquidity clearing phase, but the overall macro uptrend structure remains unbroken.

– Weekly Support Test Line: As long as the price trades below 162.00, USD/JPY is at risk of continuing its technical decline towards a strong support base area in the 160.45-160.50 range (last Friday’s low).

This area is projected to be a key defensive stronghold where institutional buying will re-enter massively.