• USD/JPY eased slightly on Wednesday as investors digested comments from Japanese Finance Minister Katayama and BOJ Governor Ueda .
• Finance Minister Katayama reiterated that authorities are closely watching foreign exchange market movements and remain prepared to take appropriate steps if excessive volatility is observed..
• Traders had been waiting for verbal intervention signals, which often trigger short-term yen buying flows. Such expectation helped push the yen stronger during Asian trading session.
•Meanwhile, BOJ Governor Ueda reaffirmed that the central bank remains committed to gradual monetary tightening and may continue hiking rates, particularly while monitoring geopolitical risks from Middle East conflicts that could influence inflation dynamics.
• However, Ueda emphasized that future rate hikes are highly dependent on domestic wage growth trends. Strong wage increases would support tighter monetary policy.
• Immediate resistance is located at 157.94(March 3rd high), any close above will push the pair towards 158.48(23.6%fib).
• Support is seen at 156.41(38.2%fib) and break below could take the pair towards 155.36 (SMA 20)
Recommendation: Good to buy around 157.00, with stop loss of 156.50 and target price of 157.70
