FxWirePro: USD/JPY edges lower as markets await BOJ policy verdict

 • USD/JPY edged lower on Thursday    as investors cautiously awaited the Bank of Japan’s latest policy decision.

• The Bank of Japan is expected to keep rates unchanged but reaffirm its commitment to gradually raising borrowing costs to curb further yen weakness and inflation risks.

• Hawkish board members Naoki Tamura and Hajime Takata are likely to dissent and repeat their proposals, made in September, to hike rates to 0.75% - a level unseen in three decades.

•  At the meeting, the board will also conduct a quarterly review of its growth and inflation forecasts..

•The BOJ last year exited a decade-long, massive stimulus programme and raised rates to 0.5% in January on the view Japan was close to durably hitting its 2% inflation target.

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• Immediate resistance is located at 155.59(23.6%fib), any close above will push the pair towards 154.28(Higher BB).

•  Support is seen at 151.71 (38.2%fib) and break below could take the pair towards 150.14 (50%fib)

Recommendation: Good to buy  around 152.10, with stop loss of 151.50 and target price of 154.00