USD/JPY tests critical levels as Tokyo watches intervention threshold

USD/JPY is walking a tightrope near intervention-triggering levels, with the pair testing crucial resistance as Japanese authorities intensify verbal warnings about excessive yen weakness. The pair has climbed toward the psychologically important 152.00 level, raising concerns in Tokyo about a potential breakout that could prompt official action. Gold's recent weakness has added to dollar strength, while the Dollar Index maintains elevated levels above 106.00. Japanese officials have signaled readiness to intervene if movements become "excessive and one-sided." Technical indicators show USD/JPY in overbought territory, with RSI above 70. Immediate resistance stands at 152.00-152.20, where previous intervention occurred. Support lies at 150.50, aligned with the 20-day moving average. Traders remain cautious, with many reducing positions ahead of potential volatility from either intervention or NFP-driven moves.