FxWirePro: USD/JPY edges higher but bulls lack punch

 • USD/JPY edged higher on Monday  as   yen dipped  as Sanae Takaichi looked likely to take the premiership with backing from key political figures.

• The safe-haven currency weakened further as risk appetite improved following a partial easing of trade tensions between Beijing and Washington.

• Takaichi’s bid to become Japan’s first female prime minister was threatened after the sudden split with the LDP’s 26-year coalition partner.

•Meanwhile, Bank of Japan board member Hajime Takata said on Monday that the economy is withstanding the impact of U.S. tariffs and has likely already reached the 2% inflation target, reaffirming his call for resuming interest rate hikes.

• Takata, who opposed keeping BOJ rates at 0.5% in September, may push for another hike at the October 29-30 meeting.
 
• Immediate resistance is located at 152.00(Psychological level), any close above will push the pair towards 153.29(23.6%fib).

•  Support is seen at 150.40 (38.2%fib) and break below could take the pair towards 149.91 (SMA 20)

Recommendation: Good to buy around 150.50, with stop loss of 149.50 and target price of 151.40