FxWirePro: USD/JPY extends gains, potential for bullish continuation

• USD/JPY gained ground   on Tuesday as hawkish comments  Federal Reserve Chair Jerome Powell boosted greenback across the board.

• Powell took a more hawkish tone in a speech at a conference in Tennessee, hinting that the US central bank will likely continue to decrease interest rates by a quarter percentage point in the future.

• Traders remain certain that the Fed will cut again at the next policy setting meeting in November, but slashed expectations for a 50 basis-point . 

• A daily close below 38.2%fib will further improve bullish outlook, and open the possibility of rally towards 145.00.
 
•  Immediate resistance is located at 144.60 (38.2%fib), any close above will push the pair towards 145.00 (Psychological level).

• Support is seen at 143.50 (Daily low) and break below could take the pair towards 141.81 (23.6%fib).

Recommendation: Good to buy around 144.30, with stop loss of 143.50 and target price of 145.00