USDJPY falls back below the 2025 high following intense verbal intervention. What's next?

The Japanese Yen has rebounded following intense verbal intervention, causing USDJPY to fall back below the 2025 high of 158.87. This comes after confirmation from Japan's Prime Minister Kishida regarding the dissolution of parliament and the calling of snap elections in February. Such political uncertainties have contributed to a bearish outlook for the Yen as the negative real interest rates persist due to the Bank of Japan's accommodative stance. Technical analysis suggests that after probing above the 2025 high, sellers are expected to push the price towards the 154.50 support level. Conversely, buyers will need to see a break above this high to establish new upward momentum. The 4-hour chart also indicates an upward trendline, where a pullback may present buying opportunities. On the hourly chart, the break below the minor upward trendline signals a potential larger pullback. Key upcoming data will include U.S. Jobless Claims, which could significantly influence market sentiment moving forward. Overall, the sentiment for USDJPY is leaning towards bearish in the near term.