• USD/JPY continues to grind higher as Japan's Ministry of Finance has refrained from intervening in the foreign exchange market despite repeated warnings about excessive currency moves..
• The ongoing "cat-and-mouse" game between Japanese authorities and traders has allowed the pair to steadily advance, keeping pressure on the yen.
• The pair traded in a 161.74-161.79 range during the Asian session, moving closer to Monday's peak of 161.93.
• Market positioning suggests yen short positions may have increased further over the past week, leaving the market potentially vulnerable to a sharp reversal. While direct currency intervention from Japanese authorities could have a meaningful impact.
• Immediate resistance is located at 161.95 (23.6%fib), any close above will push the pair towards 162.35(Higher BB).
• Support is seen at 161.34(Daily low) and break below could take the pair towards 160.30(38.2%fib).
Recommendation: Good to buy around 161.70, with stop loss of 161.20 and target price of 162.50
