FxWirePro: USD/JPY downside pressure builds, key support level in focus

 • USD/JPY edged lower on Monday as Japan’s wage growth data reinforced bets of a BOJ rate hike next week.

• Japan's real wages shrank for the 10th consecutive month in October, with an uptick in nominal pay falling short of taming relentless consumer inflation, government data showed on Monday.

• Wage trends will be a key focus for the BOJ board when it decides on interest rates at its December 18–19 meeting..

•Meanwhile, Gross domestic product contracted at an annualised 2.3%, rather than 1.8%, marking the fastest pace since the third quarter of 2023, the Cabinet Office said on Monday..

• The BOJ is widely expected to raise its policy rate at the December 18–19 meeting, with the government prepared to accept the decision

• Immediate resistance is located at 155.59(38.2%fib), any close above will push the pair towards 156.000 (Psychological level).

•  Support is seen at 153.82 (50%fib) and break below could take the pair towards 153.44 (SMA 20)

Recommendation: Good to sell  around 155.20 with stop loss of 156.30 and target price of 153.90