FxWirePro: USD/JPY loses momentum but bullish setup remains

• USD/JPY dipped on Monday as the dollar weakened, driven by growing expectations that a U.S.–Iran agreement could eventually be reached.

• U.S. President Donald Trump said the U.S. military began a blockade of ships leaving Iran's ports on Monday, but added that Iran had been in touch and wanted to make a deal.

• The series of comments "has brought some relief to the markets, as it has renewed the possibility of a diplomatic resolution. 

• The yen found added support from potential intervention risks as USD/JPY tested the 160 level, previously associated with action by Japanese policymakers..

• Meanwhile, BOJ Governor Kazuo Ueda highlighted the importance of monitoring the economic impact of the Iran conflict, cautioning that higher oil prices may dampen Japan’s growth prospects.
 
•  Immediate resistance is located at 159.23(SMA 20), any close above will push the pair towards 160.24(23.6%fib).

•  Support is seen at 158.17 (38.2%fib) and break below could take the pair towards 157.78(Lower BB ).

Recommendation: Good to buy  around 158.10, with stop loss of 157.50 and target price of 159.70