• USD/JPY edged higher on Tuesday, but gains were limited as the yen remained firm, supported by strong growth data on Monday that increased expectations of a rate hike in Japan.
• Japan's economy exceeded expectations in the fourth quarter, fueled by stronger business spending and an unexpected rise in consumption, bolstering the central bank's case for future rate hikes.
• Gross domestic product grew 2.8% annualized in the October-December quarter, according to preliminary data released on Monday, surpassing the market estimate of a 1.0% gain.
• At (GMT 11:17) US dollar was trading down 0.19% at 151.76 against the Japanese yen.
• Technical signals are bearish as RSI is heading up at 39, daily momentum studies 5, 9 and 1 SMAs are trending south.
• Immediate resistance is located at 152.48 (38.2%fib), any close above will push the pair towards 153.61 (50%fib).
• Support is seen at 151.11 (23.6%fib) and break below could take the pair towards 150.30 (Lower BB).
Recommendation: Good to sell around 151.90, with stop loss of 152.50 and target price of 151.30
