• USD/JPY strengthened on Tuesday as greenback continued to strengthen amid bets that the Fed will take a more moderate approach to cut rates
• On Monday, Fed Governor Christopher Waller also called for “more caution” on further rate cuts amid solid data.
• Investors are now looking ahead to further commentary from Fed officials Daly, Bostic, and Kugler on Tuesday, which could provide additional insights into the central bank's policy direction and economic outlook.
• At GMT 03:34, the pair was trading up 0.16 % at 149.62, retreating slightly from over night top.
• Technical signals are strongly bullish as RSI is at 64, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 150.00(Psychological level), any close above will push the pair towards 150.51 (Higher BB).
• Support is seen at 149.12 (Oct 14th low) and break below could take the pair towards 147.78 (50%fib)
Recommendation: Good to buy around 149.40, with stop loss of 147.80 and target price of 150.40
