I just noticed that USD/JPY is rebounding strongly after Japan intervened last week. The pair rose nearly 0.48% today, trading around 157.91, although it’s still far from the highs we saw before the Bank of Japan bought Yen massively, spending about 35 billion dollars. That move cost them nearly 400 pips in the pair.

What’s interesting is that buyers are returning near 157.00 without Japan having reacted yet. The Japanese Finance Minister continues to warn about decisive measures against speculative moves, but it seems the market is betting they can reach 160.00 without triggering another intervention. Meanwhile, Wall Street closed in the green on Tuesday because of optimism about the ceasefire in the Middle East, although honestly, the situation remains uncertain.

On the U.S. side, economic data is a bit weak. The Services PMI fell to 53.6, the trade deficit widened due to AI investment, and job openings decreased. But here’s the strange part: the employment subcomponents improved. New York Fed President John Williams said that the current policy is appropriate given the uncertainty, but he cannot commit to anything firm on rates for now.

Technically, the pair is trading below the moving averages clustered at 158.69, so the key resistance is there. The RSI near 45 suggests there’s still moderate bullish momentum. If buyers break 160.00, we’d see a cleaner upward move. Support is at the upward trendline around 155.38.

Volatility will continue as we await Fed speeches and the Non-Farm Payroll report on Friday. A lot of money is moving between pairs like USD/JPY, EUR/USD, and others, so traders are paying close attention. Even conversions like 30 million yen to euros are affected by these broader movements in the currency market.