USDJPY climbed to a fresh multi-month high, but prospects of potential FX intervention keep traders cautious

USDJPY surged on Wednesday, propelled by a break above recent multi-tops at 148.50, triggering stops and lifting the pair to its highest level since early February.

The pair gained 0.45% in Wednesday morning trade, as the break above the bull-channel upper boundary, the bear-trendline off 161.95 (153.92/95), and the 76.4% Fibo of 158.87/139.88 (154.39) generated a fresh bullish signal. A daily close above this level would confirm the momentum.

Bulls are approaching the psychological 155.00 level, where a breach could trigger additional stops and target the next resistance points at 155.88 and 156.24.

Technical indicators on the daily chart remain strongly bullish, supporting the upside, while limited profit-taking is expected as part of positioning for further gains. Dips should hold above 154.00, reinforced by converging trendlines, to maintain the bullish bias.

However, traders remain cautious about potential intervention by the Bank of Japan, which is concerned about the rapid weakening of the yen. While intervention signals have so far been verbal, the possibility remains a key near-term risk.

Res: 155.00; 155.88; 156.24; 156.50
Sup: 154.39; 154.00; 153.40; 152.90