FxWirePro: USD/JPY dips ahead of Bank of Japan’s policy decision

 • USD/JPY dipped on Tuesday as yen firmed ahead of a Bank of Japan meeting this week where the central bank is expected to hold rates steady.

• Investors are turning their focus to the Bank of Japan’s policy decision scheduled for Thursday.

•  Two hawkish members of the Policy Board, Naoki Tamura and Hajime Takata, recently voiced the need for a hike in the policy rate to 0.75% from 0.5% soon.

• Japan’s central bank ended its decade of ultra-loose stimulus in 2024 and delivered two rate increases by January, amid mounting political calls to stem the yen’s steep decline.

• The central bank is widely expected to keep its policy rate steady at 0.5% this week, with markets waiting for more guidance on the new administration’s agenda before pricing in a move to 0.75%.

• Immediate resistance is located at 153.26(23.6%fib), any close above will push the pair towards 154.00(Psychological level).

•  Support is seen at 151.44 (38.2%fib) and break below could take the pair towards 151.09(SMA 20)

Recommendation: Good to buy  around 152.70, with stop loss of 152.00 and target price of 153.60