• USD/JPY edged lower on Thursday as yen recovered some ground on expectations of Japanese intervention risks.
• Japanese Finance Minister Satsuki Katayama issued a fresh verbal warning about the yen’s weakness on Wednesday as it neared 155 per dollar, highlighting “one-sided and rapid movements” in the foreign exchange market.
•A weak yen could force the BOJ's hand, leading to a hike next month. Traders see a 24% chance of a quarter-point increase to the key rate in December, rising to 46% odds for a hike by January.
• Japan's yen has come under renewed pressure as the country's new premier has been pushing the central bank to go slow on further rate rises.
•The Japanese yen has already fallen below levels that previously triggered Tokyo's intervention and is now approaching 155 per dollar, a level that many Japanese companies consider a critical pain point.
• Immediate resistance is located at 154.82(23.6%fib), any close above will push the pair towards 155.50(Higher BB).
• Support is seen at 154.13 (Daily low) and break below could take the pair towards 152.90 (38.2%fib)
Recommendation: Good to buy around 154.50 with stop loss of 153.50 and target price of 155.50
