USD/JPY falls below 156.50 as yen strengthens on official warnings

USD/JPY has declined 0.5% to trade below 156.50, driven by continued verbal intervention from Japanese officials warning against excessive yen weakness. The pair retreated from recent highs near 157.00 as market participants grew cautious about potential government action to support the currency. Meanwhile, gold and silver reached new record highs, with safe-haven flows benefiting the yen amid broader risk-off sentiment. The PBOC set the USD/CNY central rate at 7.0523, supporting regional currency strength. RBA meeting minutes highlighted upside inflation risks, potentially limiting further AUD weakness. Technical indicators suggest immediate support at 156.00, with resistance now established at 157.00. Traders remain vigilant for any signs of actual intervention from Japanese authorities, which could trigger sharp yen appreciation. The combination of official warnings and record precious metal prices suggests continued volatility in yen crosses through year-end.