FxWirePro: USD/JPY gains limited amid Yen intervention concerns

• USD/JPY moved slightly higher, but upside was capped by concerns of possible Japanese intervention to support the yen.

• Markets remain cautious about the possibility of Japanese Ministry of Finance intervention should the pair push sharply higher again. However, dip-buying demand continues to emerge.

• Geopolitical sentiment has improved slightly amid hopes for easing tensions in the Middle East, contributing to softer crude oil prices, though traders remain unconvinced that a lasting resolution is close

• On the data front, Japanese exports rose for an eighth consecutive month in April, beating market forecasts as resilient global demand helped offset major supply disruptions caused by the U.S.-Israeli conflict with Iran..

• Separate data showed, Japan’s manufacturing activity slowed slightly in May, while service sector growth stalled for the first time in over a year, as rising costs linked to the Middle East conflict hurt business confidence, a survey showed on Thursday.

•  Immediate resistance is located at 159.12 (38.2%fib), any close above will push the pair towards 160.00(Psychological level).

•  Support is seen at 158.15 (SMA 20) and break below could take the pair towards 157.76(50%fib).

Recommendation: Good to buy around 159.00, with stop loss of 158.00 and target price of 159.50