FxWirePro: USD/ JPY under pressure after early buying dries up

• USD/JPY dipped on Wednesday  as hawkish comments from BOJ Deputy Governor Uchida boosted Japanese yen.

• Bank of Japan Deputy Governor Shinichi Uchida signaled that rate hikes could align with market expectations, keeping the possibility of a near-term increase in borrowing costs alive.

• The remarks indicate that the BOJ remains committed to rate hikes despite Trump’s 25% tariffs on Canada and Mexico, higher Chinese duties, and broader trade war concerns. 

• Markets are pricing in a BOJ rate hike to 0.75% by July, with another increase to 1% expected early next year.

•  At GMT 06.51,the dollar was down  0.22% at 149.16 against Japanese yen .
 
•  Immediate resistance is located at 150.39 (50%fib), any close above will push the pair towards 151.00(Psychological level).

•  Support is seen at 149.41 (38.2%fib) and break below could take the pair towards 148.14(23.6%fib ).

Recommendation: Good to sell around 149.80, with stop loss of 150.60 and target price of 149.10