Next week's forex outlook: BOJ intervention concerns to weigh on upside

About Information Provided on This Site

The information provided on our website 'Kabutan.com' is not intended to constitute investment solicitation or investment advisory services.
All investment decisions should be made at your own discretion and judgment.
The data on our website is provided by Tokyo Stock Exchange, Osaka Exchange, Nagoya Securities Exchange, JPX Market Innovation & Research, Japannext, and other sources.
Copyright of the Nikkei Stock Average belongs to Nikkei Inc. Stock price charts displayed on Kabutan.com are provided solely for the purpose of reviewing historical price movements of the securities.
These charts neither suggest nor guarantee future price movements of the securities and do not constitute recommendations to buy or sell.
In our financial results coverage, the term 'Surprise Results' identifies securities that demonstrate a significant degree of surprise in their earnings announcements.
This significance is quantitatively assessed based on multiple factors, including: the nature of the announcement (full-year or quarterly results); types of revisions (earnings or dividend forecasts); and numerical analysis comparing the announced results with both the company's previous forecasts and historical performance.
The 'Surprise Ranking' presents these results in order of their calculated surprise factor. Please note that neither these results nor rankings are intended to suggest or guarantee future performance of the listed securities, nor should they be construed as recommendations to buy or sell.

Fri May 8, 2026 5:32 pm JST Currency

The dollar-yen pair is expected to face upside pressure in the coming week amid ongoing concerns over potential intervention by the Japanese government and the Bank of Japan. The currency is forecast to trade in a range between 153.00 yen and 157.00 yen.

Regarding the U.S. employment data for April, released on the evening of May 8 Japan time, nonfarm payroll growth was expected to slow significantly. Should economic uncertainty intensify and expectations for Federal Reserve interest rate cuts expand, dollar-selling and yen-buying flows could emerge. U.S. Treasury Secretary Bessent is slated to visit Japan on May 11 for a three-day trip, with meetings scheduled with Prime Minister Sanae Takaichi, Finance Minister Satsuki Katayama, and BOJ Governor Kazuo Ueda. Markets will closely monitor remarks regarding Japan’s rising interest rates and yen weakness. Furthermore, any escalation in Middle East tensions could spur safe-haven dollar demand, heightening intervention fears and market volatility.

Next week, the BOJ is scheduled to release its Summary of Opinions from the April monetary policy meeting on May 12. In the United States, April consumer price index data is due on May 12, followed by retail sales figures on May 14.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.