• USD/JPY slipped lower on Wednesday as markets assessed the likelihood of further official action from Japan .
• Market sentiment toward the yen was further supported by comments from U.S. Treasury Secretary Scott Bessent, who reiterated Washington's support for Japan's currency stabilization.
• U.S. Treasury Secretary Scott Bessent said on Tuesday that Washington would do "whatever it takes" to support Japan's efforts to stabilize the yen, following last week's coordinated intervention by the U.S. and Japan that caught bearish yen traders off guard.
• The remarks followed a series of comments from Bessent advocating higher Japanese interest rates, reinforcing expectations that the Bank of Japan could raise rates at its September 17-18 policy meeting.
• Immediate resistance is located at 157.78(38.2%fib), any close above will push the pair towards 162.42(Higher BB).
• Support is seen at 157.14(Lower BB) and break below could take the pair towards 159.79(50%fib).
Recommendation: Good to sell around 157.80, with stop loss of 159.50 and target price of 156.50
