FxWirePro:USD/JPY climbs back above 160.00 after BOJ rate decision

• USD/JPY firmed on Friday as the yen remained under pressure after the Bank of Japan left interest rates unchanged.

• At the two-day policy meeting that ended on Friday, the BOJ kept ⁠short-term interest rates steady at 1% in a widely expected move after a hike to the 31-year-high level just last month.

• The Bank of Japan   signaled the possibility of further hikes, warning for the first time that underlying inflation could rise above its target.

• The central bank also pointed to rising inflation pressures from strong global AI-related demand and noted that concerns over the economic impact of the Middle East conflict were easing.
    
•  The BOJ’s decision followed Japan’s yen-buying, dollar-selling intervention in New York markets on Thursday, though the move failed to provide a lasting boost to the yen as traders continued to test Tokyo’s commitment to supporting the currency.
 
• Immediate resistance is located at 160.88 (38.2%fib), any close above will push the pair towards 161.85(Higher BB).

•  Support is seen at 159.44(Daily low) and break below could take the pair towards 158.30 (61.8%fib).

Recommendation: Good to buy  around 160.40, with stop loss of 159.70 and target price of 162.00