• USD/JPY edged higher as the yen weakened despite repeated verbal intervention from officials .
• Japanese officials’ verbal warnings have failed to ease pressure on the yen, with authorities now planning to improve management of their $1.3 trillion FX reserves to support potential intervention..
• Markets are increasingly skeptical about Tokyo’s ability to carry out further currency intervention after a record-sized operation nearly two months ago significantly depleted foreign exchange reserves.
• Some Bank of Japan board members backed additional rate hikes to bring policy closer to neutral levels, according to a summary of opinions from the June policy meeting released Wednesday.
• Immediate resistance is located at 161.97 (23.6%fib), any close above will push the pair towards 162.85(Higher BB).
• Support is seen at 161.15(June 22nd low) and break below could take the pair towards 160.39 (SMA 20).
Recommendation: Good to buy around 162.20, with stop loss of 161.60 and target price of 162.70
