FxWirePro: USD/JPY edges up, remains on front foot

• USD/JPY edged higher  on Thursday as  safe-haven demand linked to risks around the Strait of Hormuz continuing to support the greenback..

• The Bank of Japan is expected to keep interest rates steady next week but signal its readiness to hike them as soon as June.

• The BOJ ended a decade-long, massive stimulus in 2024 and raised interest rates including in December on the view that Japan was making progress in durably hitting its 2% inflation target.

• On the data front, Japan's manufacturing activity expanded at its strongest pace in four years in April as firms boosted production over concerns about potential supply shortages due to rising tensions in the Middle East, a private-sector survey showed on Thursday.

• The S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to 54.9 in April, the highest since January 2022, from 51.6 in March. The 50-mark separates growth from contraction.
 
•  Immediate resistance is located at 159.71(Daily high), any close above will push the pair towards 160.21(Higher BB).

•  Support is seen at 158.27 (SMA 20) and break below could take the pair towards 158.88(38.2%fib ).

Recommendation: Good to buy  around 159.30, with stop loss of 158.50 and target price of 159.90