FxWirePro: USD/JPY edges lower but bullish outlook persists

 • The USD/JPY edged lower   on Tuesday as  investors assessed the implications of U.S. and Israeli strikes on Iran on energy prices and the global economy.

• Israel struck Hezbollah targets in Lebanon after rocket attacks, while Iran continued missile and drone strikes on Gulf states. Qatar also halted LNG production, triggering precautionary shutdowns of regional oil and gas facilities.

• Europe and Japan are more exposed to higher energy costs than the U.S., which is a net energy exporter.

• Japan’s Katayama said financial officials are closely monitoring markets with a strong sense of urgency and noted that Japan reached a shared understanding with the U.S. last year regarding potential currency intervention.

•Meanwhile, Bank of Japan Governor Kazuo Ueda did not mention monetary policy in a speech on Tuesday, a day after BOJ Deputy Governor Ryozo Himino said market volatility would not prevent a rate increase.

• Immediate resistance is located at 155.36(Higher BB), any close above will push the pair towards 159.26(Higher BB).

•  Support is seen at 156.71(38.2%fib) and break below could take the pair towards 155.22 (SMA 20)

Recommendation: Good to buy  around 157.00, with stop loss of 156.00 and target price of 157.70