FxWirePro :USD/JPY drifts above 162 as range trading persists

• USD/JPY traded in a narrow range above the 162.00 level as investors refrained from taking large positions.
    
•   The threat of Japanese authorities intervening in the currency market continues to limit upside momentum, particularly on moves above 162..

• Yield spreads have narrowed slightly, with the two-year JGB-U.S. Treasury differential at 269 basis points and the 10-year spread at 183 basis points, reducing some of the dollar's yield advantage.

• Meanwhile, Japanese Prime Minister Sanae Takaichi pledged to boost investment in growth sectors in her first economic blueprint on Tuesday, though rising bond yields highlighted concerns over potential government influence on monetary policy..

• Takaichi's administration has struggled to dispel market concerns that it could increase spending and pressure the Bank of Japan to delay interest rate hikes, helping keep borrowing costs low for Japan's massive debt burden.
 
•  Immediate resistance is located at 162.74 (23.6%fib), any close above will push the pair towards 163.02(Higher BB).

•  Support is seen at 162.15(SMA20) and break below could take the pair towards 161.36(38.2%fib).

Recommendation: Good to buy around 162.30, with stop loss of 161.50 and target price of 162.80