FxWirePro: USD/JPY slides below 154 level, scope for further downside

• USD/JPY dipped below 154 level on Wednesday  as the yen firmed as investors viewed Prime Minister Takaichi’s election victory as a boost for fiscal discipline.

 • After a decisive election win, Takaichi gained a strong mandate for higher spending and tax cuts, reaffirming her plan to suspend the 8% food sales tax for two years.

 • Investors so far believe her policies won’t significantly impact Japan’s fiscal health, lifting equities and the yen and steadying government bonds.

• The yen was also supported by concers that Japanese authorities might intervene to curb speculative FX selling in foreign exchange market.

• Immediate resistance is located at 154.45(Daily high), any close above will push the pair towards 155.00 (Psychological level).

•  Support is seen at 153.25(50%fib) and break below could take the pair towards 152.12 (Lower BB)

Recommendation: Good to sell around 153.60, with stop loss of 154.50 and target price of 153.00