• USD/JPY hovered near 40 year low on Monday as the escalating US-Iran conflict investors cautious.
• Brent crude climbed 3% to cross $90 a barrel for the first time in more than a month as the U.S. military started a ninth straight day of attacks against Iran, which in turn struck targets across the region..
• Higher oil prices tend to pressure the yen due to Japan's heavy reliance on energy imports. However, traders remain alert for potential Japanese intervention, particularly with domestic markets closed for a holiday, as thinner liquidity could provide Tokyo with an opportunity to support the currency.
• Meanwhile, Japan's latest economic policy blueprint reaffirmed that monetary policy decisions will remain the responsibility of the Bank of Japan, signaling no shift in the government's stance.
• Immediate resistance is located at 162.94 (23.6%fib), any close above will push the pair towards 163.22(Higher BB).
• Support is seen at 162.10(SMA 20) and break below could take the pair towards 161.08 (Lower BB).
Recommendation: Good to buy around 162.30, with stop loss of 161.50 and target price of 162.80
