• USD/JPY eased slightly on Wednesday after BoJ Governor Kazuo Ueda flagged rising inflation risks but gave no signal of an imminent rate hike.
• BoJ Governor Kazuo Ueda said central banks should not focus on oil prices alone, as temporary shocks can become persistent through wages and inflation expectations..
• The comments come as rising oil prices from Middle East tensions add inflation pressure in Japan, prompting BOJ officials to signal a more hawkish stance and markets to price in a possible rate hike as early as next month.
• The BoJ said it wants inflation to sustainably reach 2%, driven by wages and services rather than raw material costs, before raising rates further.
• Immediate resistance is located at 159.43 (38.2%fib), any close above will push the pair towards 160.00(Psychological level).
• Support is seen at 158.62 (50%fib) and break below could take the pair towards 158.27(April 16th low).
Recommendation: Good to buy around 159.10, with stop loss of 158.50 and target price of 159.60
