Summary

• Intervention-driven downside resumes: USD/JPY plunged 2.4% to a two-month low after Japan’s ~$34.5B intervention on Thursday, April 30, with a sharp intraday drop today, May 6, hinting at a possible second round of intervention.
• Rebound likely a dead cat bounce: The 1.5% recovery to 157.94 appears corrective within a newly formed short-term downtrend, rather than a reversal.
• Bearish technical breakdown confirmed: Price broke below an "ascending wedge" at 157.55, reinforcing downside bias below 157.30/55, with key supports at 155.55, 154.65, and 154.05 in focus.

By Kelvin Wong

After the "final verbal warning" and actual FX intervention by Japanese authorities last Thursday, May 30, 2026 (Bloomberg reported that Japan spent $34.5 billion to buy up the yen), the USD/JPY plummeted by 2.4% (its worst daily loss since December

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