FxWirePro: USD/JPY dips as Japanese Yen firms on intervention talk

 • USD/JPY edged lower on Thursday as yen firmed after officials kept up their warnings on potential currency market intervention..

• Japan has not eased its vigilance over exchange-rate movements, its top currency diplomat Atsushi Mimura said on Thursday, issuing a fresh warning against currency volatility after the yen surged against the dollar.

• The yen has surged nearly 3% since Prime Minister Sanae Takaichi's election victory on Sunday as investors believe her sweeping mandate could pave the way for fiscal discipline as it eliminates the need for negotiations with opposition parties.

•A weak yen has posed a challenge for Japanese policymakers as it pushes up import costs and broader inflation.

• On the data front, Japan's annual wholesale inflation slowed for a second consecutive month in January but yen-based import costs rose, highlighting the impact of a weak yen on prices and monetary policy.

•Wholesale price data will be among factors the BOJ scrutinises in determining whether underlying inflation is on track to durably hit its 2% target.

• Immediate resistance is located at 154.94(38.2%fib), any close above will push the pair towards 155.77(SMA 20).

•  Support is seen at 152.09(50%fib) and break below could take the pair towards 151.71(Lower BB)

Recommendation: Good to sell around 153.30, with stop loss of 154. 80 and target price of 152.30