USD/JPY Bulls Face Uncertainty Amid Rising Concerns of Intervention

The USD/JPY has been showing a bullish trend in short-term charts since most of the past two weeks. However, on longer-term charts, there's a clear shift that took place after the Japanese Finance Ministry intervened almost two months ago.

Support delivered from the five-year trendline in the pair has helped the currency stay above 155.00, but there's still a question about where the next line-in-the-sand might be. The larger facet of carry unwind is fundamental convergence between the two economies, which doesn't appear nearby at this point.

The past two weeks have seen significant Yen weakness, but it's unlikely that policymakers will tolerate prices beyond the 164.00 level. This may also be relevant to the 160.00 level, following a strong sell-off three weeks ago as buyers showed more comfort above that level.