FxWirePro: USD/JPY wobbles amid greenland developments

 • USD/JPY initially dipped but recovered some ground  as investors reacted to geopolitical tensions over greenland  .

• President Trump announced fresh tariffs on eight European countries, imposing an initial 10% levy with plans to raise it to 25% from June 1, reigniting concerns over transatlantic trade relations.

• The European Union confirmed that previously suspended retaliatory tariffs will be reinstated from February 6, signaling a firmer trade response stance, although EU diplomats indicated there are currently no plans to introduce countermeasures specifically tied to the Greenland issue.

  • Data on Japanese machinery orders in November showed an 11% month-on-month decline, more than double what economists had forecast in a Reuters poll.

• The Bank of Japan meets on Friday and, while no rate hike is expected this time, policymakers could flag a tightening as soon as April.
 
• Immediate resistance is located at 159.20(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).

•  Support is seen at 157.22(SMA 20) and break below could take the pair towards 156.75 (38.2%fib)

Recommendation: Good to buy around 157.60, with stop loss of 156.50 and target price of 158.50