FxWirePro: USD/JPY uptrend loses steam, remains on bullish path

 • USD/JPY eased on Wednesday as investors assessed the economic impact of the Middle East conflict ahead of the U.S. Federal Reserve's policy decision.  .

• Markets are in a holding pattern ahead of key central bank decisions, with investors reluctant to take strong positions before major policy signals.

•Central banks in the US,UK, the euro zone, Japan, Canada, Switzerland, and Sweden will also meet this week in their first sessions since the start of the Iran war.

• The Federal Reserve is set to announce its decision later today, and is widely expected to keep rates unchanged. Attention will be on guidance and projections. Meanwhile, the Bank of Japan meets tomorrow, and is also expected to maintain its current policy stance.

  • The ongoing Middle East conflict continues to pose upside risks to inflation and downside risks to growth, particularly via energy markets, which could complicate the global macro outlook.
 
• Immediate resistance is located at 159.71(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).

•  Support is seen at 157.62(38.2%fib) and break below could take the pair towards 157.42 (SMA 20)

Recommendation: Good to buy around 157.60, with stop loss of 157.00 and target price of 158.50