FxWirePro: USD/JPY edges higher but upside is limited

• USD/JPY edged higher  on Monday  as escalating retaliatory threats in the Middle East conflict  lifted demand for greenback.

• Trump issued his latest threat to Iran on Saturday, less than a day after signaling the U.S. might be considering winding down the conflict.

•Iran warned it would carry out retaliatory strikes on infrastructure across neighboring countries and signaled that the Strait of Hormuz a key global oil shipping route would remain shut.

•The risk of tit-for-tat strikes on civilian infrastructure threatens millions of people who depend on desalination plants for their water supply, raising the potential for a severe humanitarian impact.

•Japan's top currency diplomat Atsushi Mimura signaled caution about speculative activity in oil markets spilling over into foreign exchange.
 
• Immediate resistance is located at 159.84(23.6%fib), any close above will push the pair towards 160.50 (Higher BB).

•  Support is seen at 159.02(Daily low) and break below could take the pair towards 158.05 (SMA 20)

Recommendation: Good to buy around 159.00, with stop loss of 158.00 and target price of 159.80