Published: 28 November 2025,08:47
Daily Market Analysis New
*Japanese yen recovers slightly after recent aggressive losses.
*BoJ officials signal possible gradual tightening amid stronger inflation data.
*Government officials warn of potential intervention to curb excessive volatility.
The Japanese yen has stabilized modestly after a period of sharp declines, supported by renewed speculation that the Bank of Japan may raise interest rates in the near term. Market attention has been drawn to hawkish signals from BoJ board member Asahi Noguchi, who reiterated that the central bank would gradually adjust monetary accommodation if economic activity and prices continue to develop in line with forecasts. Noguchi indicated that rate hikes would be paced to smoothly reach the neutral interest rate once the 2% inflation target is achieved.
Supporting the case for tightening, Japan’s Tokyo Core Consumer Price Index rose to 2.80% in the latest release, above the expected 2.70%, reinforcing expectations for policy adjustment.
Concerns over the yen’s rapid decline have prompted explicit warnings from Japanese officials. Finance Minister Satsuki Katayama pledged that the government would take “appropriate action” to counter excessive market volatility, while Takuji Aida, a member of a key advisory panel, raised the possibility of intervention to mitigate the economic impact of a weak currency.
Taken together, these factors suggest that while the yen remains under pressure from broader structural challenges, short-term support has emerged from hawkish central bank commentary, stronger-than-expected inflation, and potential government intervention, providing a temporary floor for the currency.
Technical Analysis
USD/JPY is hovering near the 155.95 support level after recent declines, with momentum indicators signaling caution. The MACD shows increasing bearish pressure, forming a developing death-cross, while the RSI sits at 50, suggesting the pair may enter a short-term rangebound phase as traders await clearer directional catalysts.
A decisive break below 155.95 could accelerate losses toward the next support at 154.40, reinforcing the bearish trend. Conversely, if the support holds, USD/JPY may rebound toward 157.00, with resistance at 157.95 marking a key hurdle for bullish continuation.
Resistance level: 157.00, 157.95
Support level: 155.95, 154.40
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