USDJPY – Bulls hesitate near the 160 barrier, potential intervention point in sight

USDJPY dips slightly after nearing the 160 barrier, widely seen as a potential intervention trigger, recalling Japan’s intervention when the pair surpassed this level at the end of April.

Monday’s session closed in the red for the first time in eight days. However, the long tail on the daily candle indicates strong bids, suggesting markets might challenge the 160 level again despite intervention threats.

So far, dips have been shallow and contained by the rising 5 DMA, keeping lower supports at 158.25/157.87 (rising 10 DMA / Fibo 38.2% of the 154.54/159.93 rally) out of reach.

Fading bullish momentum and overbought conditions on the daily chart signal potential corrections.

Any pullback above these supports is likely to be a healthy correction, maintaining the larger bullish trend intact. Conversely, a firm break below these levels could indicate a deeper correction.

Res: 159.70; 160.00; 160.19; 160.87
Sup: 158.66; 158.25; 157.87; 157.38