FxWirePro: USD/JPY hovers near 5-month high, maintains bullish bias

• USD/JPY traded near five-month high on Monday as investors continued to evaluate the Bank of Japan's interest rate outlook.

• The BOJ kept interest rates unchanged at 0.25% this month, with Governor Kazuo Ueda noting that the central bank was closely monitoring wage trends for next year and clarity on the incoming U.S. administration's economic policies.

• Economists expect  the BOJ may raise rates to 0.50% by the end of March, while interest rate markets are pricing in only a 42% chance of a hike in January.

• The final Au Jibun Bank Japan Manufacturing PMI rose to 49.6 in December, signaling the mildest contraction in three months. 

•  At GMT 05.40,the dollar was up 0.04% at 157.83 against Japanese yen .
 
• Immediate resistance is located at 158.29 (23.6%fib), any close above will push the pair towards 159.00 (Psychological level).

• Support is seen at 157.30 (Dec 26th low) and break below could take the pair towards 156.47(38.2%fib).

Recommendation: Good to buy around  157.60 with stop loss of 156.80 and target price of 158.40