FxWirePro: USD/JPY edges up, looks to extend gains

 • USD/JPY edged higher  on Wednesday as investors assessed the economic impact of the Middle East conflict ahead of the U.S. Federal Reserve's policy decision.  .

• BOJ January meeting minutes showed many board members supported further rate hikes, without committing to a specific pace.

• The minutes also highlighted growing concern over the weak yen’s impact on inflation, as firms increasingly pass on higher import and labour costs.

• The remarks highlight the BOJ’s commitment to tightening, with policymakers confident that higher U.S. tariffs and past rate hikes have not yet significantly weighed on the economy..

  • At its March meeting, the BOJ kept rates unchanged but maintained a tightening bias, citing rising oil prices as a risk to inflation. Despite heightened uncertainty from the Middle East conflict, markets still see about a 60% chance of a rate hike in April
 
• Immediate resistance is located at 159.81(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).

•  Support is seen at 158.16(SMA 20) and break below could take the pair towards 157.74 (38.2%fib)

Recommendation: Good to buy around 158.80, with stop loss of 158.20 and target price of 159.50