USD/JPY has seen another round of intervention, pushing the pair down to $156.70 after climbing to nearly $164.

The latest move has pushed the exchange rate back to a familiar area around $155. That was the level last tested, but not broken, during the previous round of intervention in April, and that remains the case after the latest intervention.

The $155 level was tested several times during the spring and held firm. It was one reason the previous round of intervention failed to generate meaningful follow-through, ultimately allowing USD/JPY to resume its upward trend.

At this point, USD/JPY is technically oversold, with the relative strength index below 30 and the exchange rate trading below its lower Bollinger Band.

This is not a purely technical situation, and traditional technical analysis may not fully apply. Even so, assuming there is no further intervention, the currency pair could be due for a rebound.

If the exchange rate breaks below $155, there is scope for it to fall further, potentially finding support around $152.50.

However, if support at $155 holds and USD/JPY fails to break below that level, the pair could climb back towards $160, retracing much of the losses seen during the latest round of intervention.