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FxWirePro: USD/JPY holds range near 160 as intervention risks loom

• USD/JPY traded range bound on Monday as traders remained alert for signs of potential intervention by Tokyo following strong warnings from officials in recent days.

• Japanese Finance Minister Satsuki Katayama warned on Friday that authorities stand ready to act against speculative moves in currency markets, noting that volatility has increased “significantly.”."

• Scepticism remains over intervention impact, as geopolitical tensions boost safe-haven dollar demand, leaving the yen down 1.5% and pinned near 160..

• Speculators have continued to build short yen positions, with the latest weekly data showing net shorts at $5.7 billion.
 
•  Immediate resistance is located at 159.86(April 6th high), any close above will push the pair towards 160.54(23.6%fib).

•  Support is seen at 159.17 (SMA 20) and break below could take the pair towards 158.76(38.2%fib ).

Recommendation: Be on sidelines
 

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