• USD/JPY gained ground on Thursday as markets scaled back expectations for Japanese rate hikes.
• Yen came under strong selling pressure on Wednesday after Japan's new prime minister said the country is not ready for additional rate hikes, following a meeting with the central bank governor..
• On the data front, Japan’s business activity continued to grow for the eighth straight month in September, driven by strong demand.
• A daily close above 23.6%fib will further improve bullish outlook, and open the possibility of rally towards 145.00.
• Immediate resistance is located at 147.38 (23.6%fib), any close above will push the pair towards 147.77(Higher BB)
• Support is seen at 146.36 (Daily low) and break below could take the pair towards 146.01 (38.2%fib).
Recommendation: Good to buy around 146.70, with stop loss of 145.60 and target price of 147.70
