Ueda Keeps 158.00 in Play as Forex Factory Watches USD/JPY

USD/JPY was trading around the 158.00 resistance zone on forex factory after Japanese officials intervened in the FX market and yen sellers quickly faded the moves. The pair held near that level as Bank of Japan Governor Ueda said policymakers want more time before changing course.

The Bank of Japan left interest rates unchanged at 0.75%, even as three members dissented and voted for a rate hike. Ueda said they want to take a little bit more time in gauging how the Middle East situation would affect Japan’s economy, and he acknowledged that underlying inflation is currently a bit below the 2% target.

Ueda and the BoJ vote

Ueda also said underlying inflation to be around 2% from second half of 2026. That leaves traders with a simple near-term read: the central bank is not signaling an immediate turn, while the yen market is still testing whether intervention can hold the line near 158.00.

The move back toward resistance came after Japanese officials acted in the FX market, but sellers were quick to push back. The 1-hour chart showed a minor support zone around 156.50, giving the pair a short-term range that traders can watch on both sides.

U.S. data and USD/JPY

The dollar side of the trade had support from the start of the week, and broader price action had stayed rangebound for several weeks. That left the next U.S. data run to guide the immediate test of whether USD/JPY can keep pressing higher or loses momentum near 158.00.

The next U.S. CPI report was due today, the U.S. PPI data was due tomorrow, and the U.S. Retail Sales report and the latest U.S. Jobless Claims figures were due on Thursday. Those releases give traders a near-term sequence of price, inflation, and demand figures to compare against Japan’s slower-moving policy stance.

156.50 and 162.00

For now, the market still has two clear reference points: the 156.50 support area on the 1-hour chart and the 162.00 level that framed the broader price discussion. If intervention fades again and U.S. data supports the dollar, the 158.00 zone remains the first barrier traders have to clear.