FxWirePro: USD/JPY consolidates, likely to maintains downward pressure

• USD/JPY steadied on Thursday as Japanese markets reopened after the Golden Week holiday, while traders remained cautious following sharp yen volatility in the previous session.

• The yen recorded its fourth sudden surge in the past week, keeping market participants alert for possible intervention by Japanese authorities..

• Traders continue to closely monitor official comments after Japan’s top currency official stated that the IMF’s classification of the yen as a floating currency does not restrict Tokyo from taking action in the foreign exchange market if needed.

• Attention was also drawn to the Bank of Japan, where meeting minutes showed that several board members believe additional rate hikes may be necessary if the Iran conflict drags on and fuels inflationary pressures.

•  Immediate resistance is located at 157.47(38.2%fib), any close above will push the pair towards 158.70(SMA 20).

•  Support is seen at 155.65 (May 1st low) and break below could take the pair towards 154.87(50%fib ).

Recommendation: Good to sell around 156.40, with stop loss of 155.50 and target price of 155.60