USD/JPY Drops 0.8% as Japan Warns on FX, Successful US Talks End Yen Slide

USD/JPY fell sharply by 0.8% to 148.50, ending a seven-day losing streak for the yen after Japanese officials issued fresh warnings about excessive currency movements and reported successful bilateral talks with US counterparts. Japan's Finance Ministry indicated readiness to intervene if speculative moves continue, with officials describing recent yen weakness as "one-sided and rapid." The successful conclusion of US-Japan financial dialogue appears to have given Tokyo more flexibility in potential intervention measures. EUR/USD gained 0.3% to 1.0865, while GBP/USD rose 0.4% to 1.2980 as dollar weakness spread across majors. AUD/USD advanced 0.5% to 0.6620 on improved risk sentiment. Technical indicators suggest USD/JPY may test support at 148.00, with a break potentially accelerating declines toward 146.50. Resistance now stands at 149.50, previously strong support.