• USD/JPY traded modestly higher on Tuesday, with upside limited by lingering concerns over possible intervention by Japanese authorities.
•Traders continue to monitor for any signs of Japan-U.S. coordinated foreign exchange intervention, while reports of official rate checks would also likely trigger sharp market reactions.
•The Japanese yen surged as much as 5% over the previous three trading sessions after Japan confirmed it had carried out a rare coordinated yen-buying intervention with the United States on Friday.
•Meanwhile, Japan's Economy Minister Minoru Kiuchi said on Tuesday that the impact of higher costs stemming from the Middle East conflict has yet to significantly feed through to consumer prices, suggesting inflationary pressures remain contained for now.
• Immediate resistance is located at 157.83 (50%fib), any close above will push the pair towards 158.91 (May 14th high).
• Support is seen at 156.60 (Lower BB) and break below could take the pair towards 155.52(38.2%fib).
Recommendation: Good to sell around 157.70, with stop loss of 158.50 and target price of 157.00
