• The USD/JPY eased slightly on Tuesday as markets cut expectations for a Japanese rate hike this week, shifting the focus to a possible move in January.
• The BOJ ended negative interest rates in March and raised its policy target to 0.25% in July. It has signaled readiness to hike again if wages and prices align with projections, boosting confidence in reaching 2% inflation.
• At GMT 10:56, the pair was trading up 0.16% at 153.82, retreating from daily high 154.35.
• Immediate resistance is located at 154.44(38.2%fib), any close above will push the pair towards 155.62(23.6%fib).
• Support is seen at 153.50(50%fib) and break below could take the pair towards 152.66 (61.8%fib)
Recommendation: Good to buy around 153.70, with stop loss of 153.00 and target price of 155.00
