FxWirePro: USD/JPY hovers near 7-month low, Outlook strongly bearish

• USD/JPY hovered  near  7-month low on  Thursday as investors digested BOJ board member Kazuyuki Masu.

•BOJ board member Kazuyuki Masu said in a speech that the bank may be forced to raise interest rates rapidly if inflation accelerates, as Japan's financial conditions remain accommodative.

•Ahead of next week’s policy meeting, Masu avoided providing clear guidance on the timing or pace of future rate hikes, but warned that price pressures were becoming broader and underlying inflation was nearing the BoJ’s 2% target.

•The BOJ is widely expected to raise rates on Friday next week, and market players will watch closely for clues on the pace of further tightening.

 
• Immediate resistance is located at 154.16 (Daily high), any close above will push the pair towards 156.97(50%fib).

•  Support is seen at 153.07(23.6%fib) and break below could take the pair towards 152.29(Lower BB)

Recommendation: Good to sell  around 153.50, with stop loss of 154.50 and target price of 152.50