• USD/JPY strengthened on Monday as yen weakened after despite hawkish comments from Bank of Japan Governor Kazuo Ueda.
• BOJ Governor Ueda said wage hikes are broadening beyond major firms and likely to accelerate amid a tight job market, signaling conditions for another rate hike are taking shape.
• The remarks may boost expectations of the BOJ resuming its rate hike cycle later this year after a pause over U.S. tariff concerns.
• After ending its decade-long stimulus last year, the BOJ raised rates to 0.5% in January, expecting to sustainably hit its 2% inflation target..
• The BOJ held rates in July but raised inflation forecasts and upgraded its economic outlook, keeping rate hike expectations alive.
• Immediate resistance is located at 147.83(SMA 20), any close above will push the pair towards 148.41(38.2%fib).
• Support is seen at 146.74(50%fib) and break below could take the pair towards 146.02(Lower BB.
Recommendation: Good to buy around 147.10, with stop loss of 146.60 and target price of 147.80
