FxWirePro:USD/JPY hovers near a four-decade low

• USD/JPY hovered near fresh four-decade low as repeated warnings of possible intervention failing to curb the currency’s weakness amid broad US dollar strength.
    
• Markets largely ignored Japan's Finance Minister's warning of potential currency market intervention, as well as reports suggesting Bank of Japan policymakers are willing to accelerate the pace of rate hikes.

• Expectations for a Bank of Japan rate hike in October strengthened after a Bloomberg report said BOJ officials are open to raising interest rates faster than economists currently expect.

• Broader market fundamentals continue to support the U.S. dollar, with escalating Middle East tensions boosting demand for the greenback as a safe-haven asset.

•  Immediate resistance is located at 163.87(23.6%fib), any close above will push the pair towards 164.00(Psychological level).

•  Support is seen at 163.02(July 23rd low) and break below could take the pair towards 162.44(38.2%fib).

Recommendation: Good to buy around 163.50, with stop loss of 162.80 and target price of 163.90