• USD/JPY rose above 152.00 level on Tuesday as investors looked for fiscal policy signals from Japan’s prime minister-designate Sanae Takaich.
• Attention is focused on the Japanese markets following a surprise weekend victory by fiscal dove Takaichi, raising concerns about the country’s fiscal and monetary policy direction.
• Former Bank of Japan executive Kazuo Momma said on Wednesday that the yen’s recent sharp declines could prompt the central bank to raise interest rates as early as this month.
•The yen is down over 3% for the week against dollar, on pace for steepest weekly decline in a year.
• Immediate resistance is located at 152.72(38.2%fib), any close above will push the pair towards 153.00 (Psychological level).
• Support is seen at 151.80 (Daily low) and break below could take the pair towards 150.75 (50%fib)
Recommendation: Good to buy around 152.30, with stop loss of 151.50 and target price of 154.00
