• 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
