• USD/JPY initially slipped but later regained ground on Monday as markets remained alert to potential action from Japanese authorities following suspected intervention last week aimed at supporting the weakened yen..
• The yen climbed as much as 0.75% to 155.69 before paring gains, with much of the appreciation coming during a nine-minute stretch around midday Singapore time.
Tokyo officials declined to confirm whether intervention took place last week, but sources told Reuters that authorities likely stepped in to buy yen, marking the first such action in two years.
• Traders continue to assess the likelihood of further intervention, with Tokyo often taking advantage of thin holiday trading conditions to step into the market and influence currency movements.
•Markets have also weighed the possibility of US coordination with Japan to bolster the currency.
• Immediate resistance is located at 157.04 (50%fib), any close above will push the pair towards 157.98(March 3rd high).
• Support is seen at 155.78(Daily low) and break below could take the pair towards 155.33 (61.8%fib)
Recommendation: Good to sell around 157.00, with stop loss of 157.60 and target price of 156.40
