USD/JPY Bulls Tread Cautiously Amid Intervention Risks and Key Resistance

The Japanese yen has been under pressure since Monday, allowing yen crosses to recover some of their post-intervention losses. However, traders are wary of another potential intervention by Japan and the US Treasury as they coordinate efforts to support the yen.

USD/JPY approached key resistance levels on Tuesday after a 0.9% gain, marking its best day since January. The move appears corrective, with volatility remaining low compared to the previous bearish sell-off.

With the US Treasury and Japanese Ministry of Finance prepared to intervene again, yen bears may be playing with fire as USD/JPY approaches resistance levels near 159.53, 160 handle, July low (160.47), and 160.88 high.