Bulls cracked former top of June 30 (145.06) on Monday and posted new 2023 high (145.22) but the price eased from headwinds on retest of key barrier and more significant threats of possible intervention.
Traders fear that Japanese authorities may intervene again, like they did last year when USDJPY breached 145 zone and briefly probed above 150, before the price was pushed sharply down by intervention.
Although Japan’s action was so far verbal, traders worry that authorities may decide to support yen at any time and started to adjust their positions not to be caught at the wrong foot.
Daily studies are firmly bullish and warn of further advance in case Japan opts to stay on hold with intervention, which would open way for extension towards psychological 150 barrier, with initial targets at 146.10, 147.00 and 148.05.
On the other hand, the pair may fall sharply if Japan intervenes and risk acceleration towards psychological 140 support.
Res: 145.06; 145.22; 146.10; 147.00.
Sup: 144.41; 143.37; 142.54; 141.51.
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