USDJPY declines amid signals of possible Japanese currency intervention

USDJPY is correcting after testing the key resistance at 157.65. The current quote is 157.29. Details — in our analysis for 22 December 2025.

USDJPY forecast: key takeaways

• Japanese authorities stated their intention to take action against excessive exchange-rate fluctuations
• Finance Minister Satsuki Katayama warned of readiness to respond to speculative activity in the FX market
• USDJPY forecast for 22 December 2025: 158.65

Fundamental analysis

USDJPY is declining after a sharp rise on Friday, as Japanese authorities signaled readiness for currency intervention. Officials stated their intention to take measures against excessive exchange-rate volatility, emphasizing concerns about sharp and one-sided movements of the yen.

These comments followed statements by Finance Minister Satsuki Katayama, who warned that Japan is prepared to respond to speculative operations in the foreign exchange market. He noted that yen depreciation leads to higher import costs and increases pressure on households.

Despite the recent interest rate hike, the yen remains under pressure. Monetary tightening has had only a limited effect in supporting the national currency.

USDJPY technical analysis

USDJPY quotes are correcting within an ascending channel and remain above the EMA-65, indicating that the overall bullish impulse remains intact. Today’s USDJPY forecast suggests a resumption of growth and a move toward the 158.65 level after the completion of the short-term correction.

Additional confirmation of the bullish scenario is provided by the Stochastic Oscillator. Its signal lines have turned down from the overbought area and are approaching the support line.

A sustained break and consolidation above the 157.65 level will serve as a key technical signal in favor of trend continuation.

Summary

The USDJPY correction remains limited due to verbal intervention by Japanese authorities. Technical analysis confirms the preservation of the upward trend: holding above the EMA-65 and a breakout above 157.65 would create conditions for renewed growth toward the 158.65 target.

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