FxWirePro: USD/JPY gains above 148.00 as yen falls on Japan political turmoil

• USD/JPY gained past 148.00 level on Monday as yen weakened on heightened political uncertainty in Japan   after PM Ishiba resigned.

• Japan’s Ishiba resigned on Sunday, triggering potential policy uncertainty for the world’s fourth-largest economy.

• Investors are watching closely for the possibility that Ishiba could be succeeded by a supporter of looser fiscal and monetary policies, such as LDP veteran Sanae Takaichi, who has been critical of the Bank of Japan’s interest rate hikes.

• The yen showed little reaction on Monday to data showed that Japan’s economy grew much faster than initially estimated in the second quarter.

• Japan’s GDP grew at an annualised pace of 2.2% in the April–June quarter, revised Cabinet Office data showed on Monday.  

• Immediate resistance is located at 148.54(Higher BB), any close above will push the pair towards 148.76 (38.2%fib).

•  Support is seen at 147.74(SMA20) and break below could take the pair towards  146.85 (50%fib ).

Recommendation: Good to buy around 148.10 with stop loss of 147.50 and target price of 149.00