Chart - Courtesy Trading View
USD/JPY was trading largely unchanged at 148.60 at around 07:30 GMT, with session high at 148.80 and low at 148.41.
The pair is consolidating previous session's gains, markets cautious amid looming Japan intervention.
Japanese Prime Minister Fumio Kishida mentioned that they “will take steps against speculative FX moves as needed.”
Japan PM Kishida also added that rapid forex moves are undesirable, stoking speculation that Japanese authorities might intervene again.
Sluggish US Treasury bond yields and the broad US dollar pullback amid a improving risk appetite add to the downside pressure.
Technical indicators show scope for pullback. Oscillators have approached overbought territory.
Price action has paused at major trendline resistance at 148.85. Bearish RSI divergence on the daily charts raises scope for downside.
Major Support Levels:
S1: 147.45 (5-DMA)
S2: 145.21 (21-EMA)
Major Resistance Levels:
R1: 148.87 (Rising trendline)
R2: 149
Summary: USD/JPY technical bias remains bullish. Break above major trendline resistance at 148.87 will fuel further gains.
