FxWirePro: USD/ JPY dips as yen firms as BOJ rate decision looms large

 • The USD/JPY slipped lower on Monday as Japanese yen firmed on expectation that Bank of Japan will raise rates this week .

• The Bank of Japan is expected to raise interest rates on Friday, unless market shocks from Trump's inauguration disrupt plans, reaching levels not seen since 2008.

  • A BOJ rate hike would be the first since July, when a similar move, combined with weak U.S. jobs data, shocked traders and sparked a global market rout in August.

• As a policy tightening this week seems almost certain, market attention is turning to Ueda's post-meeting briefing for guidance on the timing and pace of future hikes.

• At GMT 08:16 the pair was trading down 0.12 percent  at 156.07.
 
• Immediate resistance is located at 156.38(38.2%fib), any close above will push the pair towards 158.34 (23.6%fib).

•  Support is seen at 155.07(50%fib) and break below could take the pair towards 153.70 (61.8%fib level)

Recommendation: Good to sell  around 156.40, with stop loss of 157.5 and target price of 153.50