FxWirePro: USD/ JPY consolidating around 153.50, room for further gains

• The USD/JPY consolidated around 153.50 on Monday as investors looked ahead to this week's Bank of Japan rate decision.

• Traders have almost completely priced out the possibility of a 25 basis point rate hike at the BOJ's December meeting.

• On the data front, Japan’s factory activity contracted for the sixth consecutive month due to weak demand, while the service sector continued to grow in December.

• The au Jibun Bank flash Japan Manufacturing PMI fell at a slower pace to 49.5 in December, up from 49.0 in November. Meanwhile, the au Jibun Bank flash Services PMI rose to 51.4 in December, from 50.5 in November.

• At GMT 07:38, the pair was trading up 0.01% at 153.58, highest level since November 26th.

• Immediate resistance is located at 153.44(23.6%fib), any close above will push the pair towards 154.44 (Nov 26th high).

• Support is seen at 152.10(50%fib) and break below could take the pair towards 152.13 (61.8%fib).

Recommendation: Good to buy around 153.40, with stop loss of 152.70 and target price of 154.00