USD/JPY (4H) hits intervention stumbling block

USD/JPY faces instant correction on possible intervention action after almost reaching 160. Technical signals turn cautious.
XM Group | 92 days ago

Overview: USD/JPY had almost fully recovered from April’s 3.0% intervention-driven decline and was attempting a push above the 160 level today when Japanese officials possibly acted on their latest wave of warnings, curbing further yen depreciation around this threshold.

Momentum: Both the RSI and stochastic indicators appear to have peaked in overbought territory, suggesting a potential corrective bearish phase ahead.

Bearish scenario: A decisive break below 159.00 could meet the 200-period SMA at 158.60. More downside from there could reach the 157.85 support area.

Risk: A clear close above 160.30 could trigger a renewed bullish extension if Japanese officials delay further intervention actions.

XM Group
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