FxWirePro USD/JPY rises as dip buyers offset intervention fears

• USD/JPY strengthened on Monday as the pair was supported by renewed dip-buying interest despite a broadly softer U.S. dollar backdrop authorities stand ready to intervene at any time to support the currency.
    
•  The absence of intervention from Japanese authorities has emboldened speculative investors to push the pair higher, although caution remains elevated as traders remain alert to the possibility of official action if yen weakness accelerates.

• The Bank of Japan's gradual approach to policy normalization, coupled with concerns over Japan's fiscal outlook, continues to outweigh fears of currency intervention, helping to underpin USD/JPY.

•  Japan's latest government policy blueprint called for sizeable fiscal spending measures and encouraged the BOJ to support domestic demand, reinforcing expectations that monetary policy normalization will remain slow and clouding the outlook for future rate hikes..
 
•  Immediate resistance is located at 162.77 (23.6%fib), any close above will push the pair towards 163.19(Higher BB).

•  Support is seen at 161.24(SMA 20) and break below could take the pair towards 160.75(Lower BB).

Recommendation: Good to buy around 162.10, with stop loss of 161.60 and target price of 163.00