• USD/JPY strengthened on Wednesday as greenback was supported by expectations the Federal Reserve will proceed with modest interest rate cuts.
• Recent data reflecting a strong economy, along with somewhat hotter-than-expected inflation in September, have encouraged market investors to lower expectations for an aggressive U.S. rate cut.
• At GMT 09:05, the pair was trading up 0.15 % at 149.41 , having touched day low at 148.90 earlier in the day.
• Technical signals are strongly bullish as RSI is at 52, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 149.81(Oct 15th high), any close above will push the pair towards 150.44 (23.6%fib).
• Support is seen at 148.62 (38.2%fib) and break below could take the pair towards 148.00(Psychological level)
Recommendation: Good to buy around 148.30, with stop loss of 147.80 and target price of 149.00
