• USD/JPY eased slightly on Tuesday as traders were wary of possible intervention by Japanese authorities to bolster the currency.
• The absence of official action despite the pair trading at elevated levels has reinforced market confidence that the yen may weaken further in the near term.
• From a fundamental perspective, persistent demand for U.S. dollars from Japanese importers is expected to continue supporting USD/JPY.
• Retail investors in Japan also remain active buyers of foreign assets, maintaining underlying demand for the dollar.
• Immediate resistance is located at 162.69(23.6%fib), any close above will push the pair towards 162.82(Higher BB).
• Support is seen at 161.34(38.2%fib) and break below could take the pair towards 160.15(50%fib).
Recommendation: Good to buy around 162.00, with stop loss of 161.60 and target price of 163.00
