• USD/JPY initially gained but gave up some ground as investors were cautious ahead several central bank meetings this week.
• Investor focus this week will also be on central bank meetings in Japan, Canada, Europe and the United States.
• The Fed is expected to cut rates by 25 bps after softer-than-expected September inflation, though concerns linger over the government shutdown’s data impact.
The Bank of Japan is widely expected to keep interest rates unchanged at its upcoming policy meeting this week
• The BOJ is expected to consider rate hikes as recession concerns ease, though political factors may prompt it to stay on hold for now.
.
• Immediate resistance is located at 155.53(23.6%fib), any close above will push the pair towards 154.71(Higher BB).
• Support is seen at 151.69 (38.2%fib) and break below could take the pair towards 150.83 (SMA 20)
Recommendation: Good to buy around 152.70, with stop loss of 152.00 and target price of 153.60
