FxWirePro: USD/JPY extends fall as yen rises on intervention fears

• USD/JPY extended declined on Tuesday as yen continued to firm after Japanese officials warning about  one-sided and sharp fluctuations, heightening speculation of forex market action.

 • Japan’s top currency diplomat Atsushi Mimura said on Monday authorities would take “appropriate” action against excessive FX moves, warning intervention remains possible after last week’s central bank meeting triggered renewed yen weakness.

• Japan can act freely against excessive yen movements, Katayama said on Tuesday, in what was the strongest indication to date that authorities are prepared to intervene to halt sharp currency weakness.

• Japanese officials are increasingly uneasy about the weak yen, which is pushing up import costs, stoking inflation, and weighing on household purchasing power.

•The BOJ raised interest rates to 0.75% on Friday, taking them to levels unseen in 30 years in another landmark step in ending decades of huge monetary support.

• Immediate resistance is located at 157.68(23.6%fib), any close above will push the pair towards 158.08(Higher BB).

•  Support is seen at 155.87 (SMA 20) and break below could take the pair towards 155.54(38.2%fib)

Recommendation: Good to sell around 156.00 with stop loss of 156.70 and target price of 155.40