• USD/JPY strengthen on Wednesday as hopes of a U.S. government reopening improved market sentiment, prompting investors to unwind safe-haven positions in favor of riskier assets.
• Market participants grew more confident that U.S. lawmakers would reach an agreement to restore funding, easing concerns over prolonged fiscal uncertainty and supporting broader risk appetite.
•The yen also faced further headwinds from expectations of greater fiscal largesse in Japan, after Prime Minister Sanae Takaichi said she would work on setting a new fiscal target extending through several years to allow more flexible spending
• Japan’s Prime Minister Sanae Takaichi has called on the Bank of Japan to take a measured approach to raising interest rates, standing in stark contrast to the tightening bias of U.S. Fed officials.
• Immediate resistance is located at 154.82(23.6%fib), any close above will push the pair towards 155.50(Higher BB).
• Support is seen at 154.13 (Daily low) and break below could take the pair towards 152.90 (38.2%fib)
Recommendation: Good to buy around 154.50 with stop loss of 153.50 and target price of 155.50
