FxWirePro: USD/JPY edges lower amid heightened FX intervention speculation

 • USD/JPY edged lower on Tuesday  as  Japanese yen strengthened growing intervention fears.

 • Japan’s Finance Minister Satsuki Katayama on Friday gave her most forceful statement to date, warning that the government could step in if markets show excessive volatility or disorderly behavior.

 • Takuji Aida, who sits on an influential government panel, noted Sunday that Japan could intervene decisively in currency markets to cushion the economy from the impact of a weaker JPY.

  • The yen has been struggling due to Japan’s low interest rates and loose fiscal policies, but it firmed slightly from 10-month lows after Finance Minister Satsuki Katayama escalated verbal intervention threats.

  • The yen has fallen roughly 6% since Prime Minister Sanae Takaichi took office, as investors worry about the heavy borrowing needed to fund her stimulus plans.  

• Immediate resistance is located at 157.57 (23.6%fib), any close above will push the pair towards 158.00 (Psychological level).

•  Support is seen at 155.46(38.2%fib) and break below could take the pair towards 154.82 (SMA 20)

Recommendation: Good to buy  around 157.40, with stop loss of 156.00  and target price of 158.50