FxWirePro: USD/JPY neutral in the near-term, scope for downward resumption

 • USD/JPY remained range bound after renewed verbal intervention signals from Japanese officials

• Traders remained focussed on the Japanese yen after recent interventions and verbal warnings from Tokyo kept sharp selling at bay.

• Market speculation suggests Tokyo may have spent around $35 billion in efforts to support the yen, although authorities have not officially confirmed any intervention.

•Japan faces no constraints on how often it can intervene in currency markets and is in daily contact with U.S. authorities, its top currency diplomat said on Thursday, reinforcing Tokyo's resolve to defend the embattled yen.

  • The yen was largely steady at 156.73   and is set to end the week on a steady footing.

• Immediate resistance is located at 157.64 (50%fib), any close above will push the pair towards 158.55(SMA 20).

•  Support is seen at 156.02(May 7th low)and break below could take the pair towards 155.44 (50%fib)

Recommendation: Good to sell  around 156.80, with stop loss of 157.50 and target price of 156.00