• USD/JPY dipped on Tuesday as yen firmed on bets that the Bank of Japan will continue to raise interest rates.
• Bank of Japan Governor Kazuo Ueda reiterated on Tuesday that the central bank is prepared to continue raising interest rates if underlying inflation moves closer to its 2% target.
• Though rate hikes remain on the table, Ueda highlighted the need to avoid a return to zero rates, which would weaken the BOJ’s ability to manage future economic downturns.
• The BOJ ended its decade-long massive stimulus program last year and raised short-term interest rates to 0.5% in January, believing Japan was nearing a sustained achievement of its 2% inflation target.
•At GMT 05:50, the dollar was trading down 0.02% at 144.56 against Japanese yen
• Immediate resistance is located at 145.89 (61.8%fib), any close above will push the pair towards 146.38 (Higher BB).
• Support is seen at 144.16(50%fib) and break below could take the pair towards 142.42(38.2 %fib).
Recommendation: Good to sell around 144.60, with stop loss of 145.50 and target price of 143.50
