FxWirePro: USD/JPY runs out of steam but maintains bullish outlook

 •USD/JPY strengthened on  Wednesday as the yen weakened further on expectations of Takaichi’s looser fiscal and monetary policies.

• Takaichi, the first female leader of Japan's ruling Liberal Democratic Party, won Tuesday’s lower house vote to become the next prime minister.

• Takaichi’s backing of fiscal stimulus and looser monetary policy has kept investors cautious and complicates the Bank of Japan’s efforts to raise rates.

• Takaichi is expected to take a hardline stance on immigration and defense, reflecting a broader global shift to the right.

• The yen has lost 2.6% this month as Takaichi jostled to become Japan's prime minister, marking its biggest monthly decline against the greenback since July.
 
• Immediate resistance is located at 153.15(23.6%fib), any close above will push the pair towards 154.00(Psychological level).

•  Support is seen at 150.09 (38.2%fib) and break below could take the pair towards 150.38 (SMA 20)

Recommendation: Good to buy around 150.50, with stop loss of 149.50 and target price of 153.00