• USD/JPY firmed on Wednesday as the dollar strengthened after Powell adopts a cautious tone on Fed policy path.
• Powell highlighted uncertainty over future rate cuts, as the central bank navigates inflation pressures and slowing labor conditions.
•On the data front, Japanese manufacturing shrinks more than anticipated in September, hurt by elevated U.S. trade tariffs.
• On the data front, Japan’s Flash Manufacturing PMI fell to 48.4 in early September, below forecasts of 49.5 and down from 49.7 in August, indicating sector contraction.
• Japan posted an unexpected trade deficit in July as exports fell for a third straight month on weaker global demand and U.S. trade policy shifts.
• Immediate resistance is located at 148.14(38.2%fib), any close above will push the pair towards 148.59(Higher BB).
• Support is seen at 147.10(SMA20) and break below could take the pair towards 146.97(61.8%fib).
Recommendation: Good to buy around 147.30, with stop loss of 146.50 and target price of 148.20
