• USD/JPY edged lower on Wednesday as investors positioned for the Bank of Japan’s policy decision this week.
• The yen advanced about 0.5% on Tuesday after U.S. Treasury Secretary Scott Bessent urged Japan's government on Wednesday to give the central bank scope to raise interest rates.
•The comments come ahead of the BOJ's two-day policy meeting ending on Thursday, when markets widely expect the central bank to hold off on raising interest rates.
• Bessent's comments added to complications for the administration of new Prime Minister Sanae Takaichi, who is known as an advocate of expansionary fiscal and monetary policy.
•Meanwhile, President Donald Trump and Japan’s new Prime Minister, Sanae Takaichi, met on Tuesday and agreed to boost bilateral cooperation through fresh trade and critical minerals deals.
.• Immediate resistance is located at 153.14(38.2%fib), any close above will push the pair towards 154.00(Psychological level).
• Support is seen at 151.35 (SMA 20) and break below could take the pair towards 150.89 (38.2%fib)
Recommendation: Good to buy around 151.90, with stop loss of 151.40 and target price of 153.70
