FxWirePro: USD/JPY dips as yen strengthens on policy divergence between BoJ and Fed

 • USD/JPY slipped lower on Thursday  as diverging BoJ-Fed policy outlooks benefited   Japanese yen

• The Federal Reserve delivered a widely anticipated rate cut on Wednesday and indicated it still expects one further quarter-point reduction in 2026.

• Meanwhile,markets are now increasingly pricing in a potential BoJ rate hike as soon as next week, a sharp contrast to the U.S. Federal Reserve’s dovish rate cut.

• In the Dec. 2–9 survey, 90% of economists (63 out of 70) predicted the Bank of Japan would lift short-term rates to 0.75% from 0.50% at next week’s meeting.

• After the BOJ’s October meeting, Governor Kazuo Ueda indicated that the initial progress in next spring’s wage negotiations would be central to deciding when to raise rates.

• Immediate resistance is located at 156.92(Daily high), any close above will push the pair towards 157.59 (23.6%fib).

•  Support is seen at 155.40 (38.2%fib) and break below could take the pair towards 154.14 (SMA 20)

Recommendation: Good to sell  around 155.80 with stop loss of 156.50 and target price of 154.80