• USD/JPY steadied around 162.70 as strong buying interest kept the pair well supported.
• Market participants appear to be placing less weight on repeated warnings from Japanese authorities about potential currency intervention.
• The absence of any immediate action from Japan's Ministry of Finance (MOF) has encouraged traders to push the pair closer to the psychologically important 163.00 level, with intervention threats increasingly failing to deter bullish momentum.
• Japanese authorities may wait until after the release of key U.S. employment data before deciding whether to step into the market, allowing them to assess the impact of the figures on U.S. interest rate expectations.
• Immediate resistance is located at 162.90 (23.6%fib), any close above will push the pair towards 163.16(Higher BB).
• Support is seen at 161.79(June 30th low) and break below could take the pair towards 161.10(SMA20).
Recommendation: Good to buy around 162.60, with stop loss of 162.00 and target price of 163.20
