• USD/JPY struggled for direction on Thursday as traders divided over the Middle East conflict and looming Japanese FX market intervention risks.
• The US maintained that peace negotiations are ongoing, while Iran signaled it has no intention of holding direct talks with Washington.
• German Chancellor Friedrich Merz said Germany is pressing the U.S. and Israel to end the Iran war, while Gulf states had warned Washington that strikes on Iran’s infrastructure would trigger retaliation.
• Oil rose, trimming prior losses as Iran reviews a U.S. proposal, keeping energy supply concerns in focus.
•On the data front, Japan’s service inflation rose 2.7% y/y in February, supporting the view that a tight labour market is driving firms to pass on higher costs.
• Immediate resistance is located at 159.41(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).
• Support is seen at 158.51(38.2%fib) and break below could take the pair towards 158.41 (SMA 20)
Recommendation: Good to buy around 159.20, with stop loss of 158.50 and target price of 159.90
