• USD/JPY rebounded strongly on Wednesday as investors continued to assess the outlook for Bank of Japan monetary policy.
• On Tuesday, BOJ Governor Kazuo Ueda indicated that they have time to evaluate market and economic developments before altering monetary policy, suggesting no immediate urgency to raise rates further.
• The latest developments dented prospects of a rate hike in October, although a move in December is still expected.
• A daily close below 38.2%fib will further improve bullish outlook, and open the possibility of rally towards 146.00.
• Immediate resistance is located at 145.29 (38.2%fib), any close above will push the pair towards 146.00 (Psychological level).
• Support is seen at 142.71 (23.6%fib) and break below could take the pair towards 141.81 (Sep 20th low).
Recommendation: Good to buy around 144.30, with stop loss of 143.50 and target price of 145.40
