USD/JPY slipped to 157.32 on Friday, extending a three-session fall as the yen firmed after the Bank of Japan kept its key rate at 1.25%, in line with expectations. Policy guidance did some of the work: core inflation has reached the 2% target, raising the probability of another hike as early as December. The decision passed by an 8–1 vote, and one board member pushed for an immediate move to 1.5%. The yen also drew support from safe-haven demand after weak results from large technology groups fuelled doubts about AI spending and prompted another equity sell-off, while global asset managers have started edging back into Japanese debt.
Technical Analysis And Market Levels
On the four-hour chart, the pair previously pushed up to 158.33 before pulling back towards support at 157.14; it was trading around 157.61. The main path still points higher towards resistance at 158.03, then 158.94, with 160.08 as the broader target, while MACD remains above zero even as momentum has softened. On the hourly view, consolidation has formed after a drop from 158.03; holding above 157.14 keeps the focus on a rebound, with 157.57 the nearer hurdle. A break below 157.14–157.22 would put 156.07 in view.
