FxWirePro: USD/JPY edges higher, set to stay on back foot

• USD/JPY edged higher on Monday but gains were limited   as hopes for a U.S.-Japan trade deal and expectations of further BoJ rate hikes kept investors cautious.

• Japan’s chief tariff negotiator, Ryosei Akazawa, plans to visit the U.S. again on May 30 for a fourth round of trade talks, just a week after his current visit.

• A major gap remains between Washington, which is unwilling to reduce auto and steel tariffs, and Tokyo, which continues to push for their removal.

• The Bank of Japan remains on course to raise interest rates and gradually taper bond purchases setting it apart from its rate-cutting peers.
• At GMT 06:40, the dollar was up  0.33% to 143.54 against the Japanese yen.

• Immediate resistance is located at 144.13 (50%fib), any close above will push the pair towards 145.00(Psychological level).

•  Support is seen at 142.20(38.2%fib) and break below could take the pair towards  141.31 (Lower BB  ).

• Recommendation: Good to sell around 143.00 with stop loss of 143.60  and target price of 142.30