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FxWirePro: USD/JPY on nervous hold around 160.00

• USD/JPY traded in a narrow and nervous range on Friday as attention remains firmly on the risk of Japanese FX intervention.

• Reports suggest that PM Takaichi has effectively approved intervention if conditions warrant, reinforcing market sensitivity around the 160.00 level.

• Speculation is also building around the Bank of Japan’s policy path, with a June rate hike still in play and uncertainty over whether a July move could be pre-emptively signalled.

• Price action has been tightly contained, with USD/JPY trading around 159.98–160.01, just below recent highs near 160.09. The 160.00 handle remains a key battleground
 
•  Immediate resistance is located at 160.11 (June 4th high), any close above will push the pair towards 160.74 (23.6%fib).

•  Support is seen at 159.11 (38.2%fib) and break below could take the pair towards 159.00(SMA 20).

Recommendation: Good to sell around 159.90, with stop loss of 160.40 and target price of 159.20
 

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