FxWirePro : USD/JPY holds bullish bias despite intervention concerns

USD/JPY firmed on Monday as escalating tensions in the Middle East pressured the currency. The U.S. launched fresh strikes on Iran over the weekend after Tehran announced the closure of the Strait of Hormuz. Iran...

• USD/JPY firmed on Monday as escalating tensions in the Middle East pressured the currency. • The U.S. launched fresh strikes on Iran over the weekend after Tehran announced the closure of the Strait of Hormuz.

• Iran retaliated with missile strikes on U.S. military bases in the Gulf, heightening uncertainty in global energy markets. •

Japan’s economy and currency remain particularly vulnerable to higher oil prices due to the country’s heavy reliance on crude imports from the Middle East.. • Japan's finance minister said the government will encourage pension funds, including GPIF, to significantly increase investments in domestic financial assets.." • The comments boosted the yen and Japanese bonds as investors anticipated GPIF could channel billions into domestic markets through its ¥293.6 trillion ($1.81 trillion) asset portfolio.

• Immediate resistance is located at 162.69(23.6%fib), any close above will push the pair towards 163.27(Higher BB). • Support is seen at 161.65(Daily low) and break below could take the pair towards 160.78(38.2%fib).

Recommendation: Good to buy around 162.30, with stop loss of 161.60 and target price of 162.80