• USD/JPY gained some ground on Wednesday as modest dollar uptick provided support to the currency pair.
• The U.S. dollar edged higher amid hopes for a diplomatic resolution to the Middle East conflict reduced safe-haven demand and improved overall risk sentiment..
• The U.S. and Iran are said to be preparing for another round of talks ahead of the ceasefire deadline, even as tensions in the Strait of Hormuz keep energy markets on edge.
• The yen continues to be sensitive to rising oil prices, as Japan depends heavily on imported energy, particularly from the Middle East.
• Immediate resistance is located at 159.25(SMA 20), any close above will push the pair towards 160.42(23.6%fib).
• Support is seen at 158.17 (38.2%fib) and break below could take the pair towards 157.78(Lower BB ).
Recommendation: Good to buy around 158.90, with stop loss of 158.20 and target price of 159.60
