• USD/JPY eased slightly on Wednesday as investors assessed the central bank’s tightening amid Japan’s expansionary fiscal outlook under Takaichi.
• BOJ Governor Ueda told PM Takaichi that the central bank is gradually raising rates to steer inflation toward 2% and support sustainable growth..
• The premier made no monetary policy requests, Ueda told reporters following his first meeting with Takaichi since her appointment.
• The meeting followed the yen’s drop to a nine-month low, prompting concern from Japan’s finance minister over currency volatility.
• Takaichi’s inauguration, a proponent of expansionary policy, complicates the BOJ’s push to raise low borrowing costs.
• Immediate resistance is located at 155.71 (23.6%fib), any close above will push the pair towards 156.25 (Higher BB).
• Support is seen at 154.83(Nov 18th low) and break below could take the pair towards 153.75 (38.2%fib)
Recommendation: Good to buy around 155.00, with stop loss of 153.60 and target price of 155.80
