• USD/JPY initially dipped but recovered some ground on Wednesday as investors digested minutes from the Bank of Japan’s September meeting.
• Minutes from the Bank of Japan’s September meeting released Wednesday showed growing support among policymakers for a rate hike, with two members favoring an immediate move.
• At its two-day policy meeting concluding on September 19, the BOJ’s nine-member board opted to maintain rates at 0.5%, dismissing calls from two hawkish members for a hike to 0.75%.
• The minutes showed that board members debated the merits of waiting, balancing downside risks to growth against persistent inflationary pressure from elevated food prices.
• Investors are now looking ahead to key economic data this week, including wage and household spending figures, for further signals on the Bank of Japan’s policy outlook.
• Immediate resistance is located at 154.68(23.6%fib), any close above will push the pair towards 155.29(Higher BB).
• Support is seen at 152.44 (38.2%fib) and break below could take the pair towards 152.00 (Psychological level)
Recommendation: Good to buy around 153.50, with stop loss of 153.00 and target price of 155.00
