No important events are expected today.

The pair is trading near 159.00 on Friday, May 22, holding close to the psychologically important 160.00 zone. The US Dollar is receiving support from strong economic data, while demand for the Yen remains limited. High oil prices further worsen the external background for Japan, as the country depends on energy imports, and rising import costs put pressure on the trade balance.

The Japanese Yen remains vulnerable following the release of inflation data. The core figure slowed to its lowest level in several years, complicating the Bank of Japan’s decision regarding further rate hikes. At the same time, authorities maintain their focus on the currency market: the pair’s approach to 160.00 increases the risk of warnings and possible support measures for the Yen, but so far this is only capping the gains.

The main scenario for USD/JPY remains upward, as the difference in interest rate expectations and the resilience of the Dollar outweigh the risk of intervention by the Japanese authorities. For buyers, the pair’s ability to hold above 158.80 remains a key factor. If the current background persists, the pair may continue its movement toward 160.00, but positions should be managed cautiously due to the market’s sensitivity to statements from Japan’s Ministry of Finance.

Recommendations: BUY 159.10, SL 158.80, TP 160.00.