• USD/JPY hovered near ten-month low on Friday as traders awaited economic data to predict how central bankers direct interest rates this year.
• The Summary of Opinions from the BoJ’s latest meeting reaffirmed its commitment to further monetary tightening, though the timing of future rate hikes remains unclear.
• The Bank of Japan hiked interest rates twice in last year but that did little to improve yen performance as the cautious pace frustrat investors.
• Meanwhile,Finance Minister Satsuki Katayama said Japan is watching FX moves closely and is prepared to act against excessive, one-sided volatility.
• Ueda made an uncharacteristic speech earlier last month in which he clearly telegraphed a rate hike at this meeting.
• In the Dec. 2–9 survey, 90% of economists (63 out of 70) predicted the Bank of Japan would lift short-term rates to 0.75% from 0.50% at next week’s meeting.
• Immediate resistance is located at 157.95(SMA20), any close above will push the pair towards 158.20(Higher BB).
• Support is seen at 156.05 (SMA 20) and break below could take the pair towards 154.72 (38.2%fib)
Recommendation: Good to sell around 157.20 with stop loss of 158.50 and target price of 156.20
