• USD/JPY drifted lower on Thursday as investors eyed for signs of intervention after repeated warnings from authorities.
• Prime Minister Sanae Takaichi on Wednesday dismissed the possibility of a British-style “Truss moment” in Japan, saying her expansionary fiscal policy would not trigger a loss of market confidence.
•Japanese currency has weakned steadily since early October reflects investor concern over Takaichi’s fiscal plans and uncertainty on BoJ policy timing
• The BoJ may signal a rate hike next month, with analysts noting the central bank could follow a steadier path to shift the currency’s course.
• Immediate resistance is located at 156.69 (Daily high), any close above will push the pair towards 157.76 (23.6%fib).
• Support is seen at 155.62 (38.2%fib) and break below could take the pair towards 155.08 (SMA20)
Recommendation: Good to buy around 155.80, with stop loss of 155.50 and target price of 157.00
