Chart alert: USD/JPY bearish breakdown from “Ascending Wedge”, it smells like another intervention

• Intervention-driven downside resumes: USD/JPY plunged 2.4% to a two-month low after Japan’s ~$34.5B intervention on Thursday, 30 April, with a sharp intraday drop on today, 6 May, 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.

After the “final verbal warning” and actual FX intervention by Japanese authorities last Thursday, 30 May 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 20 December 2022) to hit a two-month low of 155.49 on Friday, 1 May 2026.

Thereafter, the USD/JPY staged a rebound of 1.5% in the next three sessions to print an intraday high of 157.94 in today’s (Wednesday, 6 May’s start of the Asian session).

The 1.5% rebound of the USD/JPY is likely a minor corrective rebound (aka dead cat bounce) within a minor downtrend phase, as the latest Japanese authorities’ intervention has triggered the start of a short-term bearish trend.

Technical elements also suggest the end of the three sessions of rebound, and a return of the bearish impulsive down move sequence for the USD/JPY.

In today’s Asian session (Wednesday, 5 Ma) at the 12 pm SGT hour mark, the USD/JPY plummeted swiftly in a span of 15 minutes (a drop of close to 2 big figures from 157.83 to 155.80 at this time of writing). It smells like a second round of intervention.

Let’s focus now on the short-term trajectory (1 to 3 days) of the USD/JPY from a technical analysis perspective.

Trend bias: Bearish below 157.30/55 short-term pivotal resistance (see Fig. 1).

Supports: 155.55, 154.65, 154.05 (also 200-day MA), and 152.65 (also a Fibonacci extension)

Next resistances: 158.10 and 158.60 (also 50-day MA)

• The rebound on the USD/JPY from its 1 May 2026 low of 155.55 has taken on the form of a bearish “Ascending Wedge” corrective configuration.
• Price actions have broken below the “Ascending Wedge” support at 157.55, reinforcing the start of another bearish impulsive down move sequence within its ongoing minor downtrend phase.

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