FxWirePro: USD/JPY downtrend loses steam, remains on bullish path

 • USD/JPY edged higher on Thursday as the yen weakened amid political jitters, increasing uncertainty around the BoJ’s policy.

• Sanae Takaichi, the new leader of Japan’s ruling LDP, met with Japan Innovation Party leaders on Thursday to discuss a coalition ahead of next week’s prime ministerial vote.

• Takaichi’s path to succeed PM Shigeru Ishiba appeared certain until the LDP’s junior partner, Komeito, left their 26-year coalition last week, triggering talks with rival parties to choose the next premier.

• The LDP proposed October 21 for a parliamentary vote on the next premier, but the opposition has delayed it, citing ongoing coalition talks.

•Meanwhile,Government data showed Japan’s core machinery orders fell 0.9% month-on-month in August.  Core orders, a key leading indicator of capital spending, rose 1.6% year-on-year, below the forecasted 4.8% increase.
 
• Immediate resistance is located at 151.94(Oct 15th high), any close above will push the pair towards 153.05 (23.6%fib).

•  Support is seen at 150.59 (38.2%fib) and break below could take the pair towards 149.75 (SMA 20)

Recommendation: Good to buy  around 151.00, with stop loss of 149.50 and target price of 152.00