FxWirePro: USD/JPY extends gains amid yen weakness

• USD/JPY extended gains  on Thursday  as yen continued to tumble  on bets that Japan would not immediately step in to stem its weakness.

  • Finance Minister Satsuki Katayama stated that discussions on foreign exchange did not take place during her meeting with Bank of Japan Governor Kazuo Ueda.

  • The yen has dropped roughly 6% since Prime Minister Sanae Takaichi became party leader, despite rising Japanese yields, as investors remain concerned about the magnitude of borrowing required to finance her stimulus initiatives.  

• Market participants anticipate intervention by Japanese authorities near the 160 yen level or in response to any sudden market swings.
 
• Immediate resistance is located at 157.51 (23.6%fib), any close above will push the pair towards 158.29 (Higher BB).

•  Support is seen at 155.34(38.2%fib) and break below could take the pair towards 154.23 (SMA 20)

Recommendation: Good to buy  around 157.40, with stop loss of 156.00  and target price of 158.50