• USD/JPY eased slightly on Thursday as renewed conflict between the US and Iran kept investors cautious.
• The United States military confirmed that it carried out a second consecutive day of strikes against targets in Iran, marking a further escalation in hostilities between the two countries.
• In response, Tehran warned that it was preparing a large-scale retaliatory operation targeting U.S. military bases throughout the region.
• Meanwhile, speculation over possible Japanese foreign exchange intervention remains in the background
• Authorities have previously acted to support the yen when excessive dollar strength threatened market stability, meaning traders remain cautious about pushing USD/JPY significantly higher.
Immediate resistance is located at 162.80(23.6%fib), any close above will push the pair towards 163.43(Higher BB).
• Support is seen at 161.51(SMA 20) and break below could take the pair towards 161.24(38.2%fib).
Recommendation: Good to buy around 162.10, with stop loss of 160.60 and target price of 162.80
