• USD/JPY eased on Thursday as investors remained cautious ahead of the U.S. nonfarm payrolls report, a key event that could shape expectations for Federal Reserve policy..
• The Japanese yen has been one of the biggest casualties of the dollar's strength, putting Japan's Ministry of Finance in a difficult position over whether to intervene to support the currency.
• Traders remain alert to the possibility of Japanese foreign exchange intervention, with speculation that the Ministry of Finance could step in after the U.S. jobs report, particularly during thinner trading conditions created by the U.S. Independence Day holiday.
• Overnight, the yen sank to 162.84 yen against the dollar, hitting a 40-year low and well above levels that prompted Japanese authorities to intervene a few weeks ago
• Immediate resistance is located at 162.80 (23.6%fib), any close above will push the pair towards 163.25(Higher BB).
• Support is seen at 161.94(June 30th low) and break below could take the pair towards 161.22(Higher BB).
Recommendation: Good to buy around 162.30, with stop loss of 161.60 and target price of 163.00
