• USD/JPY edged higher on Friday as yen weakened after the Bank of Japan left interest rates unchanged as widely expected.
• The yen remained weaker against the U.S. dollar, even as the central bank raised its economic and inflation forecasts, and reiterated a pledge to continue tightening policy.
• At a two-day meeting that ended on Friday, the BOJ maintained its key policy rate at 0.75% in a widely expected decision after having just hiked the rate from 0.5% in December.
• In a quarterly outlook report, the BOJ raised its growth forecast for fiscal 2025 and 2026, and maintained its view the economy will remain on course for a moderate recovery.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 159.16(23.6%fib), any close above will push the pair towards 159.86 (Higher BB).
• Support is seen at 157.59(SMA20) and break below could take the pair towards 157.43 (38.2%fib)
Recommendation: Good to buy around 158.60, with stop loss of 157.50 and target price of 159.50
