FxWirePro: USD/JPY slips as traders await Fed and BOJ policy decisions

• USD/JPY slipped lower  on Wednesday  as investors exercised caution ahead of Federal Reserve  and Bank of Japan policy decision.

• The Federal Reserve is widely expected to leave interest rates unchanged at its policy meeting on Wednesday, though a rare dissent in favor of a rate cut by some officials cannot be ruled out as divisions emerge over the appropriate path for borrowing costs.

• The meeting comes amid ongoing pressure from Trump, who has repeatedly demanded rate cuts while attacking Fed Chair Powell and the central bank.

• The Bank of Japan is expected to keep policy unchanged on Thursday, with market attention focused on its forward guidance to assess the timing of the next rate hike.

• A recent trade agreement between Japan and the United States has eased external uncertainty, potentially paving the way for the BOJ to resume its policy normalization path.

• At GMT 05:50 the US dollar was down  0.35% to 147.93 against the Japanese yen.

• Immediate resistance is located at 145.05 (50%fib), any close above will push the pair towards 145.94(June 25th high).

• Support is seen at 142.88(38.2%fib) and break below could take the pair towards  142.39(Lower BB).

Recommendation: Good to buy around 147.60  with stop loss of 146.90  and target price of 148.50