• USD/JPY pushed higher on Wednesday as the yen weakened again, erasing a large portion of the gains triggered by the recent rare intervention from Japan and the U.S.
• The yen has come under renewed pressure after the sharp rebound following last month's coordinated U.S.-Japan intervention, with USD/JPY trading around 159.4.
• The broad yen weakness has kept investors focused on USD/JPY, particularly as the pair approaches the psychologically important 160 level.
• Markets remain alert to the possibility of further official action after Japan and the United States intervened recently to support the yen.
• The previous intervention produced a sharp but temporary yen recovery, and renewed depreciation has raised questions over whether authorities could step in again..
• Immediate resistance is located at 159.60(50%fib), any close above will push the pair towards 160.80(SMA 20).
• Support is seen at 157.33(38.2%fib) and break below could take the pair towards 156.77(Aug 7th low).
Recommendation: Good to buy around 159.30, with stop loss of 159.00 and target price of 161.00
