• USD/JPY dipped on Thursday as Japanese yen firmed following the Bank of Japan's upward revision to its inflation forecasts and cautiously optimistic view on the economic outlook.
• The BOJ ended its two-day policy meeting by unanimously keeping short-term interest rates at 0.5%, while raising this fiscal year’s core consumer inflation forecast to 2.7% from 2.2% previously.
• The central bank reaffirmed its commitment to raise borrowing costs if economic and price trends align with forecasts, noting that rising wages and prices are expected to drive underlying inflation closer to its 2% target.
• The BOJ's decision came after the U.S. Federal Reserve held rates steady on Wednesday, with Chair Jerome Powell's remarks dampening market expectations of a rate cut in September.
• Attention now shifts to Governor Kazuo Ueda's press conference later today for hints on when the BOJ might next raise rates.
• Immediate resistance is located at 149.70(38.2%fib), any close above will push the pair towards 151.16(Higher BB).
• Support is seen at 147.63(SMA 20) and break below could take the pair towards 147.02 (50%fib).
Recommendation: Good to buy around 148.70, with stop loss of 148.00 and target price of 149.50
