🌐Macro Background
The United States recently joined Japan in buying Japanese yen for the first time in over 25 years, labelling the coordinated intervention a "signal of friendship" aimed at propping up the yen from its 40-year lows.

This rare joint action by the US Treasury and the Bank of Japan triggered sharp yen strength, sending USD/JPY plummeting nearly 4% late last week toward three-month lows below 155.30 on Monday.

While the fundamental backdrop remains pressured by divergence in monetary yields, the explicit threat of further joint intervention serves as a significant temporary ceiling for the pair.

📊Technical Structure
On the 4-hour chart, USD/JPY experienced a severe downside breakdown following the high near 164.00, slicing through former support zones and trendlines.
Support Zone (155.04 - 156.37)
Resistance Zone (157.40 - 158.46)

🎯Trade Setup: Fade the Rally (Short Bias)
Given the lingering threat of follow-up intervention by US and Japanese authorities, shorting rallies into major resistance offers favourable risk-to-reward dynamics.
Entry Zone: 157.40 - 158.00
Take Profit Target 1: 156.37
Profit Target 2: 155.04
Stop Loss: 158.85

❌Invalidation
A sustained breakout above 158.50 would signal that market intervention flows have been fully absorbed, allowing USD/JPY to resume its broader uptrend.

📝Trade Summary
Favour shorting USD/JPY on rallies into the 157.40–158.00 resistance zone, targeting 155.04 with a stop loss above 158.85, as coordinated US-Japan intervention continues to cap upside potential.

⚠️Disclaimer
This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.