USD/JPY Nears 155 Mark, Triggering Concerns of Possible Japanese Intervention Zone

On Tuesday, USD/JPY edged closer to the 155.00 barrier, marking its fifth consecutive day of bullish momentum.

The dollar continues to capitalize on upbeat signals regarding the robustness of the US economy, potentially delaying any imminent Fed rate cuts. Meanwhile, the yen remains under pressure due to a resilient dollar and the contrasting monetary policies between the Federal Reserve and the Bank of Japan (BOJ).

Technical indicators on the daily chart remain strongly overbought, signaling a possibility of profit-taking in upcoming sessions. Furthermore, discussions surrounding Japan’s potential intervention around the 155.00 zone add a layer of uncertainty to the market sentiment.

Any pullbacks are anticipated to find support above previous resistance levels around the 152.00 zone, which could signal a healthy correction and maintain the overall bullish trend, potentially leading to a renewed push towards the 1990 peak at 155.77.

However, a breach below the 152.00 handle could pave the way for a deeper correction in the near term.

Res: 155.00; 155.29; 155.77; 156.00

Sup: 154.00; 153.68; 152.66; 152.00