USD/JPY moves above 155.50 on US Dollar strength

• USD/JPY gained ground due to the recovery of the US Dollar on Friday.
• Japan's current account surplus was lower than market expectations, weakening the Japanese Yen.
• Weekly jobless claims in the United States hit eight-month highs at 231,000, surpassing estimates of 210,000.

USD/JPY is reversing its recent losses from the previous session, trading around 155.70 during the European session on Friday. However, verbal intervention by the Japanese authorities is expected to curb the pair's upward movement. Japanese Finance Minister Shunichi Suzuki reiterated on Friday that he is willing to take necessary measures regarding currency exchange if deemed necessary.

In terms of data, Japan's annual current account surplus increased to 3,398.8 billion yen in March, from 2,360 billion yen previously. It is the 14th consecutive month of current account surplus, but it fell short of the forecast figure of 3,489.6 billion yen. Data showed that capital inflows into Japan were lower than market expectations, weakening the Japanese Yen.

USD/JPY received support from the US Dollar (USD) bullish correction, driven by the hawkish sentiment surrounding the Federal Reserve (Fed) to keep interest rates higher for an extended period.

However, the dollar faces resistance due to the decline in US Treasury yields, influenced by the US initial jobless claims data released on Thursday, which was lower than expected. The U.S. Bureau of Labor Statistics (BLS) reported that the number of people filing for unemployment benefits exceeded expectations, with initial jobless claims for the week ending May 3 at 231,000, surpassing estimates of 210,000 and the increase from the previous week's reading of 209,000.

Michigan's preliminary US consumer sentiment index for the month of May will be released later, with forecasts pointing to a slight decline. This survey assesses U.S. consumer sentiment, covering three main areas: personal finances, business conditions, and purchasing conditions.