Important events today:

10.04 12:30 UTC: USD – Consumer Price Index (CPI)

USD/JPY is holding around 159.20 on Friday, remaining near levels that increase attention from Japanese authorities to the currency market. The yen continues to suffer from the effects of expensive energy and weakness in previous weeks, although easing tensions in the Middle East is gradually reducing part of the external pressure. The upside potential of the pair appears limited.

An additional argument supporting the yen comes from Japan’s policy stance. The International Monetary Fund this week urged the Bank of Japan to continue raising interest rates, while Japanese officials again warned they are ready to take decisive action against speculative moves. For the market, this is an important signal, as the 159–160 zone is already considered sensitive in terms of possible intervention.

The domestic fundamental picture is also shifting in favor of the yen. The Bank of Japan keeps the deposit rate at 0.75%, companies are agreeing to wage increases above 5% for the third consecutive year, and regulators acknowledge that a weak currency and high energy costs are fueling inflation. If the dollar loses further support after today’s US data, the pair has room to decline.

Recommendations: SELL 159.20, SL 159.65, TP 157.85