• USD/JPY dipped on Wednesday as the yen recovered some ground as investors braced for the Fed policy announcements.
•All eyes were on the Fed's decision due later in the day, in which a 25-basis-point rate cut is almost fully priced in.
• Meanwhile, Bank of Japan (BOJ) meets next week and is expected to raise interest rates, though focus will also be on what Governor Kazuo Ueda says about the future policy path.
•Expectations of more expansionary fiscal measures in Japan have complicated the outlook for BOJ policy under which rates remain among the lowest in the world, in contrast to its peers elsewhere.
• Immediate resistance is located at 155.90(38.2%fib), any close above will push the pair towards 157.00(Psychological level).
• Support is seen at 155.47 (SMA 20) and break below could take the pair towards 154.22 (50%fib)
Recommendation: Good to buy around 156.40 with stop loss of 155.50 and target price of 157.50
