USD/JPY slipped on Monday as investors sought safe-haven assets amid fears of a potential government shutdown and rising geopolitical tensions.
• U.S. President Donald Trump is set to meet with senior congressional leaders from both parties on Monday to negotiate a government funding extension. Without an agreement, a federal shutdown will commence on Wednesday.
• On the Geopolitical front, attention remained on the war in Ukraine and the potential for increased military spending.
• Japan’s economic calendar this week includes the BOJ’s Q3 Tankan survey, industrial production, retail sales, jobs data, and final September PMIs.
• The Bank of Japan’s policy meeting summary for September 18-19 is due on Tuesday, while BOJ Governor Kazuo Ueda will hold a news conference after meeting business leaders in Osaka on Friday.
• Immediate resistance is located at 149.53(Daily high), any close above will push the pair towards 150.97(23.6%fib).
• Support is seen at 148.50 (38.2%fib) and break below could take the pair towards 147.91 (SMA 20)
Recommendation: Good to sell around 148.60, with stop loss of 149.50 and target price of 148.00
