• USD/JPY edged near 160.00 a level that previously triggered official intervention and prompting renewed warnings from Japanese authorities.
• The yen’s weakness persists despite Japan spending ¥11.7 trillion on currency intervention between April 28 and May 27, highlighting continued pressure on the currency.
• The 160.00 level is widely viewed as a “line in the sand” for the Ministry of Finance, with traders increasingly alert to the possibility of FX intervention if the pair sustains moves above this threshold.
• Japanese authorities have begun to signal heightened concern, with intervention risk now clearly elevated. Finance Minister Katayama has indicated readiness to act if necessary, although has avoided commenting on specific FX levels.
• Immediate resistance is located at 160.00 (Psychological level), any close above will push the pair towards 160.67(23.6%fib).
• Support is seen at 159.59 (June 2nd low) and break below could take the pair towards 159.08(38.2%fib).
Recommendation: Good to buy around 159.80, with stop loss of 159.30 and target price of 160.30
