• USD/JPY dipped on Tuesday as the yen recovered some of the prior day’s losses, after weak Japanese data had fueled expectations of increased government stimulus.
• The pair rallied yesterday from 152.57 to 153.62 on after weaker-than-expected Japanese GDP data weighed on the yen, encouraging fresh buying interest in the dollar.
• Aside from the weak Japan GDP data released yesterday, there are no major fundamental catalysts currently driving yen weakness.
• There was little market reaction to the recent meeting between Kazuo Ueda and Sanae Takaichi, with no significant policy signals emerging.
• Trading activity in Asia is expected to remain subdued due to Lunar New Year holidays, with several key financial centers closed.
• Immediate resistance is located at 154.00(Psychological level), any close above will push the pair towards 154.87(50%fib).
• Support is seen at 152.71(61.8%fib) and break below could take the pair towards 150.90(Lower BB)
Recommendation: Good to sell around 153.00, with stop loss of 153. 80 and target price of 152.30
