• USD/JPY traded range bound on Monday as traders remained alert for signs of potential intervention by Tokyo following strong warnings from officials in recent days.
• Japanese Finance Minister Satsuki Katayama warned on Friday that authorities stand ready to act against speculative moves in currency markets, noting that volatility has increased “significantly.”."
• Scepticism remains over intervention impact, as geopolitical tensions boost safe-haven dollar demand, leaving the yen down 1.5% and pinned near 160..
• Speculators have continued to build short yen positions, with the latest weekly data showing net shorts at $5.7 billion.
• Immediate resistance is located at 159.86(April 6th high), any close above will push the pair towards 160.54(23.6%fib).
• Support is seen at 159.17 (SMA 20) and break below could take the pair towards 158.76(38.2%fib ).
Recommendation: Be on sidelines
