Focus on the Direction of the USD/JPY as Intervention Concerns Persist

Focus on the Direction of the USD/JPY as Intervention Concerns Persist

04.05.2026

In the U.S. currency market the previous day, the April ISM Manufacturing PMI came in at 52.7, unchanged from the previous month and below the market forecast of 53.0. Meanwhile, concerns over rising input prices caused the U.S. dollar to trade in a range as it sought direction.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 potential rebound, while on the downside, the focus will likely be on whether the 155.50 to 155.00 range will hold 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) left 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; after fluctuating within a range of 1.3568 to 1.3658, it closed the week near 1.3570.The immediate focus is on whether the pair can regain the 1.3600 level; resistance is likely around 1.3660, while support is expected between 1.3560 and 1.3550.Revised manufacturing PMI figures for major European countries and the eurozone are scheduled for release today, 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 16:00, Switzerland’s April Manufacturing Purchasing Managers’ Index (PMI) at 16:30,France’s April Manufacturing Purchasing Managers’ Index (PMI, revised) at 16:50, Germany’s April Manufacturing Purchasing Managers’ Index (PMI, revised) at 16:55, the Eurozone’s April Manufacturing Purchasing Managers’ Index (PMI, revised) at 17:00,U.S. March Manufacturing New Orders at 23:00, and Mexico’s April Manufacturing Purchasing Managers’ Index (PMI) at 24:00. In particular, the Eurozone PMI is likely to be a key driver during European trading hours, while U.S. manufacturing new orders will be a key driver during New York trading hours; we will carefully monitor the reactions of the euro and the U.S. dollar.