USD/JPY faces pressure as Japan warns against speculative FX moves

USD/JPY trading remains cautious following comments from Japan's Deputy Chief Cabinet Secretary Aoki expressing concern over speculative movements in the foreign exchange market. The official emphasized the importance of currency stability reflecting economic fundamentals, suggesting heightened government attention to recent yen volatility. Japanese authorities continue monitoring how interest rate differentials affect domestic livelihoods, with the wide gap between Fed and BOJ rates keeping the yen under pressure. The comments signal potential intervention risk if USD/JPY extends gains beyond recent highs near 150.00. Market participants are closely watching for any concrete action from Japanese authorities, particularly verbal intervention escalation or actual market intervention. Technical levels show immediate resistance at 149.50, while support sits at 148.00. Traders should remain vigilant for sudden volatility spikes as Japanese officials increasingly voice concerns about excessive yen weakness impacting import costs and inflation.