USDJPY returns to support near 156.00

USDJPY is declining, slipping into the area around 156.00 amid concerns over possible interventions by the Bank of Japan. Details — in our analysis for 29 December 2025.

USDJPY forecast: key takeaways

• Market focus: the yen strengthens amid potential Bank of Japan interventions
• Current trend: a downward correction is observed
• USDJPY forecast for 29 December 2025: 155.55 or 157.00

Fundamental analysis

A brief summary of the December Bank of Japan meeting showed that policymakers discussed further monetary policy tightening even after last month’s rate hike to a multi-year high.

Several committee members argued that policy remains far from neutral in real terms and supported a gradual rate increase to stay ahead of inflation risks.

Markets are also closely watching for signs of potential interventions after Finance Minister Katayama emphasized Japan’s freedom to act against excessive fluctuations in the yen.

USDJPY technical analysis

USDJPY quotes are declining within the current corrective move. The Alligator indicator has turned downward, confirming the prevailing bearish momentum. The nearest local support is currently located at 155.55.

The USDJPY forecast for today suggests that the pair may continue to decline toward 155.55 if sellers maintain control. A return to upward movement would become possible if bulls manage to hold prices above 156.00, which could open the way for a rebound toward 157.00.

Summary

USDJPY has fallen back into the 156.00 area amid a corrective decline. Market participants remain cautious due to fears of possible intervention by the Bank of Japan.

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