• USD/JPY slipped lower on Wednesday as growing expectations of another Bank of Japan rate hike supported the yen.
• The BoJ has maintained a negative interest rate policy since 2016, but pressure has been building for a change.
• Inflation continues to exceed the central bank’s 2% goal, supporting the case for further policy normalization.
•According to market data, the probability of a BoJ rate hike at its next policy meeting has risen to over 70%, up from roughly 50% a week earlier.
• Immediate resistance is located at 155.64 (50%fib), any close above will push the pair towards 159.96 (SMA 20).
• Support is seen at 158.70 (Aug 14th low) and break below could take the pair towards 157.88 (38.2%fib).
Recommendation: Good to sell around 159.00, with stop loss of 157.50 and target price of 158.50
