FxWirePro: USD/JPY below lower range, bearish bias increases

• USD/JPY  dipped on Monday as yen firmed as investors awaited signals from the central bank on the timing of its next interest rate increase.

• BOJ widely expected to hold rates at 0.75% after its two-day meeting Tuesday.Focus shifts to quarterly outlook and Governor Kazuo Ueda’s guidance on how the ongoing Middle East conflict may shape future policy.

• Focus on how strongly Governor Kazuo Ueda signals a potential rate hike at the June meeting.

• Japanese Prime Minister Sanae Takaichi said on Monday she did not see an immediate need to compile a supplementary budget to cushion the economic blow from the Middle East conflict..
 
•  Immediate resistance is located at 160.02 (Higher  BB), any close above will push the pair towards 160.30(23.6%fib).

•  Support is seen at 159.23(SMA 20) and break below could take the pair towards  158.80 (38.2%fib).

Recommendation: Good to sell  around 153.00, with stop loss of 153.60 and target price of 158.60