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FxWirePro: USD/JPY slips as Japan intervention risk boosts Yen

• USD/JPY dipped on Monday  as   Yen potential for Japan’s FX intervention risk.

Japan ramped up yen intervention warnings and hinted that further currency weakness could prompt a near-term rate hike, amid rising inflation concerns from the Middle East conflict..

In the strongest warning yet on intervention, Atsushi Mimura said authorities may take “decisive” action if speculative moves in the yen persist..

The remark marked an escalation, as Atsushi Mimura used the term “decisive” for the first time language markets see as a clear signal of potential intervention.

  •Separately, Kazuo Ueda said the central bank will closely monitor yen moves, with weakness potentially fueling inflation and justifying rate hikes in the coming months.
 
• Immediate resistance is located at 160.21(23.6%fib), any close above will push the pair towards 161.31 (Higher BB).

•  Support is seen at 158.48(March 28th low) and break below could take the pair towards 158.77 (38.2%fib)

Recommendation: Good to sell  around 159.70, with stop loss of 158.50 and target price of 158.80

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