BoJ Intervention Impacts USD/JPY Trajectory

At the opening of the Asian session on Monday, the USD/JPY pair achieved the target of 158.60 as expected, but intervention from the Bank of Japan (BoJ) occurred at the 160 level. This intervention only managed to push the price down to the 155 level, which was a psychologically significant level where momentum increased with its breach. From the strength demonstrated at this point, it is evident that the major support level for the pair will continue to be at 155. In the event of declines below this point, support levels of 154.30 and 153.40 may become prominent. On the upside, major resistance levels are seen at 157.50 and 158.70. However, the primary resistance level for the pair remains the psychological level of 160, defended by the BoJ.