• The USD/JPY climbed on Friday as the Japanese yen weakened, with markets focused on the upcoming BoJ rate decision.
• The BoJ's next rate hike is now anticipated at the January Monetary Policy Meeting, moving up from the previously expected timeline of March.
• The move underscores rising optimism about achieving sustained wage growth in FY25 and a clearer understanding of forthcoming U.S. policy directions.
•The BoJ is expected to revise its CPI inflation projections upward, accounting for factors such as yen depreciation, rising oil costs, and higher rice prices.
• At GMT 15:55 the pair was trading up 0.60 percent at 156.06.
• Immediate resistance is located at 158.26(38.2%fib), any close above will push the pair towards 157.00(Psychological level).
• Support is seen at 154.80(50%fib) and break below could take the pair towards 156.00 (Psychological level)
Recommendation: Good to buy around 155.50, with stop loss of 154.30 and target price of 156.60
