FxWirePro: USD/JPY bulls remain in control, 5SMA should limit losses

• USD/JPY hovered near a three-month low on Tuesday as the ruling coalition's loss of a parliamentary majority in weekend elections heightened uncertainty about Japan's political and monetary outlook.

• The election results also raised the likelihood that a new government will need to secure support from smaller opposition parties and increase spending to gain public approval.

•Looking ahead , BOJ announces its monetary policy decision on Thursday, where expectations are for the central bank to keep rates on hold.

•At GMT 06:41, the pair was trading down 0.2 percent  at 153.03

• Technical signals are bearish as RSI is heading up  at 68, daily momentum studies  5, 9 and 11 DMAs are trending up.
 
• Immediate resistance is located at 153.44 (Daily high), any close above will push the pair towards 154.08 (23.6%fib).

•  Support is seen at 152.99 (5SMA) and break below could take the pair towards 151.63 (38.2%fib).

Recommendation: Good to buy  around 152.80, with stop loss of 152.00 and target price of 153.60