• USD/JPY edged higher on Monday but gains were limited as intensified clashes between Israel kept markets on edge and risk appetite in check.
• Israel and Iran exchanged new strikes on Sunday, causing civilian casualties and heightening fears of a wider regional conflict, as both sides warned civilians to stay alert.
• The focus this week will be on a series of central bank policy decisions, including the U.S. Federal Reserve on Wednesday.
• The Fed is widely expected to keep rates unchanged with market participants focusing on future projections for policy rates alongside commentary from Chair Jerome Powell.
• Attention also turns to the G7 summit, where fresh commentary on U.S. tariffs and central bank outlooks may influence market sentiment and policy expectations.
• Immediate resistance is located at 144.65 (50%fib), any close above will push the pair towards 145.76 (Higher BB).
• Support is seen at 142.98(38.2%fib) and break below could take the pair towards 142.16(Lower BB).
Recommendation: Good to sell around 144.30, with stop loss of 145.70 and target price of 143.00
