Focus on the direction of the USD/JPY pair as intervention concerns persist

Focus on the direction of the USD/JPY pair as intervention concerns persist

04.05.2026 New

In the previous session, the U.S. dollar struggled to find direction as the April ISM Manufacturing PMI came in at 52.7—unchanged from the previous month and below the market forecast of 53.0—while concerns over rising input costs weighed on the market. The USD/JPY pair traded within a range of 155.52 to 157.33 before closing near 157.06, with market participants continuing to monitor speculation regarding potential currency intervention by Japanese authorities.Currently, the 157.00 level appears to be a key resistance level for a pullback, while on the downside, the focus will likely be on whether the 155.50 to 155.00 range holds as support. We will be watching to see if the U.S. dollar continues to recover following today’s U.S. manufacturing new orders data.

European currencies remained on guard against inflation risks even after the Bank of England (BOE) kept its policy rate unchanged, with the pound briefly reaching a 10-week high against the dollar. However, the pound faced resistance heading into the weekend, fluctuating between 1.3568 and 1.3658 before closing near 1.3570.The immediate focus is on whether the pound can regain the 1.3600 level; resistance is likely around 1.3660, while support is expected between 1.3560 and 1.3550. Today, revised manufacturing PMI figures for major European countries and the eurozone are scheduled for release, and we will be watching to see how European currencies react to these economic indicators.

Today’s economic indicators include Turkey’s April Consumer Price Index (CPI) and April Manufacturing Purchasing Managers’ Index (PMI) at 4:00 PM, Switzerland’s April Manufacturing PMI at 4:30 PM, France’s April Manufacturing PMI (revised) at 4:50 PM, Germany’s April Manufacturing PMI (revised) at 4:55 PM,the Eurozone April Manufacturing PMI (revised) at 5:00 PM, U.S. March Manufacturing New Orders at 11:00 PM, and Mexico’s April Manufacturing PMI at midnight. In particular, the Eurozone PMI during European trading hours and U.S. Manufacturing New Orders during New York trading hours are likely to be key drivers, so we will carefully monitor the reaction of the euro and the U.S. dollar.