USD/JPY extends gains as yen remains under pressure

 • USD/JPY rose on Tuesday as the yen stayed under pressure amid reports that PM Sanae Takaichi may call an early election.

• Uncertainty on the political front grew after Prime Minister Sanae Takaichi’s coalition ally floated the possibility of a snap election on February 8 or 15.

 •  Japan’s finance minister said she and the U.S. Treasury secretary share concerns over the yen’s one-sided weakness, as Tokyo signaled possible intervention to curb the decline.

•  Katayama’s remarks highlight Japan’s growing concern over the yen’s slide, which broke past 158 per dollar for the first time in about a year after reports that PM Sanae Takaichi may call a February snap election.

• Broader markets remain focused on geopolitical risks, including possible U.S. action in Iran, Greenland-related developments, and a potential Supreme Court ruling on Trump-era tariffs due Wednesday.
 
• Immediate resistance is located at 158.87(23.6%fib), any close above will push the pair towards 159.35 (Higher BB).

•  Support is seen at 157.93(Daily low) and break below could take the pair towards 156.58 (38.2%fib)

Recommendation: Good to buy around 158.60, with stop loss of 158.00 and target price of 159.40