FxWirePro : USD/JPY holds relatively bid on 163 ahead Of FOMC,BoJ meetings

• USD/JPY edged higher  on Tuesday as traders awaited this week's key central bank announcements, including the Federal Reserve's policy decision.
    
• The pair traded in a tight 163.73-163.78 range during the Asian session after moving between 163.33 and 163.80 on Monday, reflecting subdued trading conditions.

• Broader market   is likely to stay range-bound until fresh guidance emerges from this week's central bank meetings.

• The Bank of Japan is widely expected to leave interest rates unchanged on Friday while maintaining a hawkish stance, signaling that further rate hikes remain possible as inflation pressures build from the Middle East conflict, a weaker yen and strong global AI demand.

• Policymakers are likely to avoid giving clear guidance on future rate increases, preferring to monitor whether the recent surge in producer prices driven by higher energy costs spills over into wider inflation.

• Investors will closely watch the BOJ's quarterly outlook report and Governor Kazuo Ueda's post-meeting press conference for signals on the timing of the next interest rate hike.
 
•  Immediate resistance is located at 163.96(23.6%fib), any close above will push the pair towards 164.42(Higher BB).

•  Support is seen at 163.36(Daily low) and break below could take the pair towards 162.56(SMA 20).

Recommendation: Good to buy around 163.50, with stop loss of 164.00 and target price of 164.40