FxWirePro: USD/JPY catches bid ahead of BoJ meeting

 • USD/JPY ticked higher on Thursday as traders stayed cautious ahead of the Bank of Japan meeting.

•The spotlight will be on Friday’s BoJ policy decision and Governor Kazuo Ueda’s remarks after the meeting.

• The BoJ is widely expected to lift its short-term interest rate to 0.75% from 0.5% at the end of its two-day policy meeting on Friday, as elevated food prices keep inflation above the 2% target.

•Markets have fully factored in the current rate move, attention among Bank of Japan observers is expected to center on signals regarding the pace of future hikes and the cycle’s peak.

•Meanwhile, Prime Minister Sanae Takaichi said on Wednesday that Japan must adopt aggressive fiscal spending to support growth and strengthen tax income as the economy remains fragile.

• Immediate resistance is located at 155.80(SMA 20), any close above will push the pair towards 157.41(Higher BB).

•  Support is seen at 154.58 (38.2%fib) and break below could take the pair towards 154.10 (Lower BB)

Recommendation: Good to buy around 155.70 with stop loss of 154.50 and target price of 156.80