• USD/JPY edged higher on Tuesday but fears of imminent currency intervention by Japanese authorities capped the upside for the pair.
• Japanese Finance Minister Satsuki Katayama said there was no change in Tokyo's stance and reiterated its readiness to take decisive action against excessive currency volatility.
• Meanwhile, Japan’s Economic Revitalisation Minister Minoru Kiuchi said he hopes the BOJ will cooperate with the government to sustainably reach the 2% inflation target..
• At a press conference, he noted that the BOJ is responsible for deciding specific monetary policy measures, including any near-term rate hike.
• The BOJ is expected to raise its short-term policy rate to 1% from 0.75% at its two-day policy meeting ending on June 16 unless a sharp escalation in the Middle East conflict upends markets
• Immediate resistance is located at 160.45 (23.6%fib), any close above will push the pair towards 160.95 (Higher BB).
• Support is seen at 159.76(June 8th low) and break below could take the pair towards 159.35(Lower BB).
Recommendation: Good to buy around 160.00, with stop loss of 159. 50 and target price of 160.70
