• USD/JPY slipped sharply lower on Friday as yen rose after the Bank of Japan (BOJ) hiked rates to their highest since the 2008.
• At its two-day meeting ending Friday, the BOJ increased its short-term policy rate from 0.25% to 0.5%, marking the highest level in 17 years for Japan.
• The move highlights the central bank's commitment to gradually raising interest rates to about 1%, which will keep Japan's economy stable without slowing it down or overheating.
• A daily close below 50%fib will further improve bearish outlook, and open the possibility of drop towards 154.50.
• Immediate resistance is located at 156.64 (38.2%fib), any close above will push the pair towards 158.12 (Jan 15th high).
• Support is seen at 154.99 (50%fib) and break below could take the pair towards 153.35 (61.8%fib).
Recommendation: Good to sell around 155.50, with stop loss of 156.30 and target price of 154.50
