USD/JPY retreats as Japan warns of intervention, silver hits record

USD/JPY declined 0.4% to 156.85 during Asian trading as Japanese officials intensified intervention warnings, prompting traders to reduce long dollar positions. Finance Ministry officials reiterated their readiness to take "appropriate action" against excessive yen weakness, marking the strongest verbal intervention in weeks. The People's Bank of China set the USD/CNY reference rate at 7.0572, slightly stronger than market expectations. Silver surged to a new record high above $32.50, driven by industrial demand and inflation hedging. Oil prices gained support from tighter US sanctions enforcement and escalating Middle East tensions, with WTI crude up 0.8% to $71.20. Technical analysis shows USD/JPY facing immediate support at 156.50, with a break below potentially accelerating declines toward 155.80. The intervention rhetoric suggests authorities may act if the pair approaches the 158.00 psychological level again.