FxWirePro:USD/JPY hovers near 40-year peak,intervention fears linger

• USD/JPY hovered near a four-decade high on Wednesday keeping traders alert for possible Japanese intervention.

• USD/JPY is now trading at its highest level in four decades, with the next key resistance seen at 164.00, followed by the November 1986 peak near 164.74.

• Unless Japan's Ministry of Finance orders another round of currency intervention, USD/JPY appears poised to establish a new, higher trading range above 163.00.

• Japan signalled its readiness to intervene in currency markets after the yen fell to a 40-year low, with Finance Minister Satsuki Katayama pledging decisive action if needed.

• Chief Cabinet Secretary Minoru Kihara said the government stands ready to respond to excessive yen moves at any time, highlighting concerns that the weak currency is driving up import costs and inflation.
 
•  Immediate resistance is located at 163.22(23.6%fib), any close above will push the pair towards 163.50(Higher BB).

•  Support is seen at 162.25(SMA20) and break below could take the pair towards 161.96(38.2%fib).

Recommendation: Good to buy around 163.00, with stop loss of 162.50 and target price of 163.70