• The USD/JPY dipped on Thursday as shift in Japan’s monetary policy outlook supported the yen, as traders anticipate further tightening in response to economic conditions and inflation trends.
• Bank of Japan Deputy Governor Ryozo Himino stated on Thursday that the central bank will keep raising interest rates if the economy and prices align with its forecasts.
• The BOJ raised interest rates to 0.5% from 0.25% last week, believing that rising wages will help maintain inflation around its 2% target.
• Technical signals are bearish as RSI is at 43, daily momentum studies 5, 9 and 10 SMAs are trending down.
• Immediate resistance is located at 155.41(38.2%fib), any close above will push the pair towards 156.00 (Psychological level).
• Support is seen at 154.10(50%fib) and break below could take the pair towards 153.45 (Lower BB)
Recommendation: Good to sell around 154.60, with stop loss of 155.20 and target price of 154.00
