FxWirePro: USD/ JPY bulls struggles as upside momentum fades

 • USD/JPY eased on Wednesday  as a cautious market mood kept the haven demand for the Japanese Yen.

• Concerns over Japan’s finances persist, especially after the cabinet signed off on Prime Minister Sanae Takaichi’s unprecedented ¥122.3 trillion budget...

• On Monday, BoJ Governor Kazuo Ueda said the Bank of Japan would continue tightening policy should economic and inflation conditions develop as expected.

• A private sector survey showed Japan’s service sector growth cooled in December to the slowest pace since May, as weaker demand offset improved export orders.

• Japan’s final S&P Global Services PMI declined to 51.6 in December from 53.2 previously, missing the flash reading of 52.5 while staying in expansion territory for the ninth consecutive month.
 
• Immediate resistance is located at 157.61(23.6%fib), any close above will push the pair towards 157.91 (Higher BB).

•  Support is seen at 156.28(SMA 20) and break below could take the pair towards 155.17 (38.2%fib)

Recommendation: Good to buy around 156.30, with stop loss of 155.60 and target price of 157.40