• USD/JPY extended downside on Wednesday after BoJ October minutes signaled more policy tightening.
• Bank of Japan policymakers debated whether to keep raising interest rates toward neutral levels, with some saying it would support long-term, stable economic growth.
• The October minutes showed many members felt conditions were ripe for a rate hike but wanted more clarity on whether firms would continue raising wages next year amid uncertainty over higher U.S. tariffs.
•Some board members warned that recent yen weakness could push inflation above target by raising import costs.
• After the BOJ’s October meeting, Governor Kazuo Ueda indicated that the initial progress in next spring’s wage negotiations would be central to deciding when to raise rates.
• Immediate resistance is located at 157.00(Dec 23rd high), any close above will push the pair towards 157.87 (23.6%fib).
• Support is seen at 155.47 (38.2%fib) and break below could take the pair towards 153.78 (50%fib)
Recommendation: Good to sell around 156.00 with stop loss of 156.60 and target price of 154.80
