FxWirePro: USD/ JPY slips lower, set to stay on back foot

 • The USD/JPY slipped lower on Tuesday  as yen firmed on growing expectations that bank of Japan would raise interest rates this week  .

• The BOJ is expected to raise interest rates on Friday, increasing short-term borrowing costs to levels not seen since the 2008 financial crisis.

  • A weak yen has troubled Japanese policymakers by driving up import costs, accelerating inflation, and dampening consumption.

•Markets currently estimate a 78% likelihood of a 25 basis point increase, reflecting growing expectations of monetary tightening.

• At GMT 06:16 the pair was trading down 0.11 percent  at 155.42.
 
• Immediate resistance is located at 156.28(38.2%fib), any close above will push the pair towards 158.32 (23.6%fib).

•  Support is seen at 154.83(50%fib) and break below could take the pair towards 154.00 (Psychological level)

Recommendation: Good to sell  around 155.60, with stop loss of 156.70 and target price of 154.70