FxWirePro : USD/JPY holds bullish bias despite intervention concerns

• USD/JPY firmed  on Monday as escalating tensions in the Middle East pressured the currency.

• The U.S. launched fresh strikes on Iran over the weekend after Tehran announced the closure of the Strait of Hormuz. 

• Iran retaliated with missile strikes on U.S. military bases in the Gulf, heightening uncertainty in global energy markets.

• Japan’s economy and currency remain particularly vulnerable to higher oil prices due to the country’s heavy reliance on crude imports from the Middle East.. 

• Japan's finance minister said the government will encourage pension funds, including GPIF, to significantly increase investments in domestic financial assets.."

• The comments boosted the yen and Japanese bonds as investors anticipated GPIF could channel billions into domestic markets through its ¥293.6 trillion ($1.81 trillion) asset portfolio.
 
•  Immediate resistance is located at 162.69(23.6%fib), any close above will push the pair towards 163.27(Higher BB).

•  Support is seen at 161.65(Daily low) and break below could take the pair towards 160.78(38.2%fib).

Recommendation: Good to buy around 162.30, with stop loss of 161.60 and target price of 162.80