FxWirePro: USD/JPY attracts selling interest, vulnerable to more downside

 • USD/JPY dipped on Wednesday as the yen strengthened on growing bets of an interest rate hike this month byBOJ.

• Markets were taken by surprise on Monday when Kazuo Ueda said the bank was reviewing the “pros and cons” of lifting interest rates in December.

•Japan’s finance minister said there is no disconnect between the government and the central bank’s economic assessment, after the governor voiced confidence and hinted at raising rates.

•Katayama said she expects the BOJ to continue working closely with the government and conduct monetary policy to achieve a 2% inflation target, accompanied by wage increases.

• Traders have priced in an increasing probability of a December hike from the Bank of Japan, with last month’s slide in the yen to 10-month lows strengthening the case for tightening.

• Immediate resistance is located at 155.90(38.2%fib), any close above will push the pair towards 157.00(Psychological level).

•  Support is seen at 155.47 (SMA 20) and break below could take the pair towards 154.22 (50%fib)

Recommendation: Good to sell  around 155.70 with stop loss of 156.50 and target price of 154.50