FxWirePro: USD/JPY trades sideways, intervention fears cap upside

 • USD/JPY traded in narrow range on Tuesday  as growing speculation of possible FX intervention by Japan kept investors cautious.

• Japan’s Finance Minister Satsuki Katayama said on Tuesday the government would keep a close watch on foreign exchange movements with a strong sense of urgency as the yen slipped to fresh eight-month lows.

•Katayama’s comments were little changed from Friday, when she warned that authorities were keeping a vigilant watch on sharp and speculative swings in the currency market with heightened urgency.

• Japan’s currency hit 154.47 per dollar in early Asian hours on Tuesday, its lowest point since mid-February, reviving fears that authorities might step in to support the yen..

•Meanwhile, Japan’s Prime Minister Sanae Takaichi unveiled a new economic strategy headquarters on Tuesday, designed to strengthen the world’s fourth-largest economy through targeted public investment in areas including semiconductors and defense.

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• Immediate resistance is located at 154.60(23.6%fib), any close above will push the pair towards 155.25(Psychological level).

•  Support is seen at 152.91 (38.2%fib) and break below could take the pair towards 152.38 (SMA 20)

Recommendation: Good to buy  around 153.70, with stop loss of 153.00 and target price of 155.00