FxWirePro: USD/JPY climbs as markets digest Fed’s policy outlook

 • USD/JPY advanced on Thursday   as the greenback rebounded slightly after the Federal Reserve’s latest policy announcement.

• The Fed cut rates by 25 basis points on Wednesday, signaling a gradual easing of borrowing costs through the rest of the year.

• Fed Chair Jerome Powell described the rate cut as a risk-management move in response to a softening labor market, noting the central bank is taking a "meeting-by-meeting" approach to future rate decisions.

• Market participants interpreted the FOMC statement as cautiously dovish, prompting short-term dollar strength.

• Market focus now shifts to the BoJ rate decision on Friday, where rates are widely expected to remain at 0.5%.

•The BOJ exited its massive, decade-long stimulus last year and raised short-term rates to 0.5% in January on the view Japan was on the cusp of durably achieving its 2% inflation target.

•With inflation staying above 2% for well over three years, the BOJ has signalled its readiness to keep hiking rates.

• Immediate resistance is located at 147.39(SMA 20), any close above will push the pair towards 148.93(38.2%fib).

•  Support is seen at 146.24(Lower BB) and break below could take the pair towards  145.65(50%fib).

Recommendation: Good to buy around 147.20, with stop loss of 146.50 and target price of 148.20