• USD/JPY strengthened on Monday as greenback continued to strengthen on the back of traders reducing bets on further jumbo rate cuts by the Fed.
• The week's main data releases are core machinery orders, trade, and the highlight will be September CPI inflation on Friday.
• BOJ board member Seiji Adachi will give a speech and news conference on Wednesday.
• At GMT 03:59, the pair was trading up 0.16 % at 149.32, highest since 10th October.
• Technical signals are strongly bullish as RSI is at 64, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 149.46(23.6%fib), any close above will push the pair towards 150.51 (Higher BB).
• Support is seen at 148.38 (Oct 11th low) and break below could take the pair towards 147.78 (50%fib)
Recommendation: Good to buy around 148.40, with stop loss of 147.80 and target price of 149.00
