FxWirePro: USD/JPY extends gains, faces 23.6% fib resistance

 • USD/JPY strengthened  on  Friday as Japanese yen continued to weaken despite hot Japan CPI data for September  .

• Japan’s core consumer prices rose 2.9% year-on-year in September, exceeding the central bank’s 2% target and fueling expectations of a near-term rate hike.

•Separate data showed, Japan’s manufacturing sector shrank in October at its fastest rate in 19 months, driven by a sharper fall in new orders, a private-sector survey showed Friday.

•  At next week’s two-day meeting, the BOJ will review the data as it evaluates whether to keep rates at 0.5% and release fresh growth and price forecasts.

•BOJ exited a decade of extensive stimulus last year and raised short-term interest rates to 0.5% in January, citing progress toward its 2% inflation goal, keeping rates unchanged afterward
 
• Immediate resistance is located at 153.30(23.6%fib), any close above will push the pair towards 154.40(Higher BB).

•  Support is seen at 151.52 (Daily low) and break below could take the pair towards 151.83 (38.2%fib)

Recommendation: Good to buy  around 152.70, with stop loss of 152.00 and target price of 153.60