• USD/JPY rose on Tuesday as yen weakened as market digested Bank of Japan Deputy Governor Ryozo Himino comments.
• BoJ Deputy Governor Ryozo Himino said Tuesday the bank should continue raising rates but stressed high global uncertainty, signaling no rush to hike further.
• Himino also noted both upside and downside risks to inflation, with tight labor markets supporting wages but slowing global growth and higher U.S. tariffs posing downside pressure on prices.
• Himino gave little guidance on the timing of rate hikes, saying only the BoJ must avoid moving too early or too late.
• The BoJ ended its decade-long stimulus last year and lifted short-term rates to 0.5% in January, expecting Japan to be close to sustainably reaching its 2% inflation goal.
• Immediate resistance is located at 148.48(38.2%), any close above will push the pair towards 149.15 (July 16th high).
• Support is seen at 146.65(Lower BB) and break below could take the pair towards 146.01(61.8%fib ).
Recommendation: Good to buy around 147.70, with stop loss of 147.00 and target price of 148.50
