FxWirePro: USD/JPY gains above 158.00 as yen weakens on political jitters

 • The USD/JPY gained past 158.00 level  on Monday   as renewed Japanese political tensions weighed yen.

• Uncertainty on the political front grew after Prime Minister Sanae Takaichi’s coalition ally floated the possibility of a snap election on February 8 or 15.

 •  A snap election would be conservative Prime Minister Sanae Takaichi’s first encounter with voters, offering Japan’s first woman leader an opportunity to leverage the high public support she has enjoyed since October.

  • Takaichi said she had directed ministers to ensure timely rollout of the current fiscal year’s supplementary budget and win parliamentary backing for the budget of the coming fiscal year, underscoring her push for heavy spending.

• Attention now turns to a batch of economic reports due this week, including the current account, machine tool orders, producer inflation and business sentiment surveys.
 
• Immediate resistance is located at 158.33(Higher BB), any close above will push the pair towards 158.66 (Higher BB).

•  Support is seen at 157.46(Daily low) and break below could take the pair towards 156.51 (SMA 20)

Recommendation: Good to buy around 158.10, with stop loss of 157.40 and target price of 158.70