• USD/JPY dipped on Wednesday as market optimism grew over a potential de-escalation of tensions in the Middle East.
• Investors were encouraged after Donald Trump signaled that U.S. military operations in Iran could conclude “very soon,” pointing to a potential timeline of two to three weeks.
• The yen rebounded from this year’s low of 160.46 per dollar, moving back above the key 160 level that had raised concerns of intervention by Japanese authorities.
• On the data front, the Bank of Japan's quarterly Tankan survey showed business sentiment among large Japanese manufacturers improved in the three months to March, though firms expect conditions to worsen in the next three months.
• Immediate resistance is located at 159.03(SMA 20), any close above will push the pair towards 160.26(23.6%fib).
• Support is seen at 157.76 (38.2%fib) and break below could take the pair towards 156.88(Lower BB ).
Recommendation: Good to sell around 159.80, with stop loss of 160.50 and target price of 159.20
