FxWirePro: USD/JPY slips as BOJ’s Ueda comment ss parks fresh rate-hike bets

 • USD/JPY slipped lower on Monday as the yen strengthened after the BOJ Governor Kazuo Ueda reiterated the possibility of a near-term rate hike.

• Ueda was sanguine on the economic impact of U.S. tariffs, saying corporate profit remained elevated and uncertainty surrounding the outlook for domestic growth was diminishing.

• Ueda noted that even with another hike, real rates would remain deeply negative, meaning borrowing costs would stay low and policy would simply ease pressure rather than tighten sharply..

• He said the bank must time its policy rate increase carefully neither too late nor too early to ensure inflation reaches its 2% target smoothly.

• Bank of Japan ended its massive, decade-long stimulus program last year and lifted its policy rate to 0.5% in January, citing confidence that inflation was nearing its sustainable 2% target.

• Immediate resistance is located at 156.67(Nov 28th high), any close above will push the pair towards 157.00(Psychological level).

•  Support is seen at 155.58(38.2%fib) and break below could take the pair towards 155.26 (SMA 20)

Recommendation: Good to sell around 155.70 with stop loss of 158.50 and target price of 155.00