FxWirePro: USD/JPY consolidating around 148.20, room for further gains

• USD/JPY steadied around 148.20 on Thursday  as   yen continued to weaken amid uncertainty over the timing and pace of Bank of Japan (BoJ) rate hikes.

• The Bank of Japan ended its decade-long stimulus program last year and raised short-term rates to 0.5% in January, signaling confidence that Japan was nearing a sustainable 2% inflation target.

• Although consumer inflation has remained above the BOJ’s target for more than three years, Governor Kazuo Ueda has pledged a gradual approach to rate hikes amid uncertainty over the effects of U.S. tariffs on Japan’s economy.

• However, persistently high food inflation and the potential for sustained wage growth have prompted some BOJ board members to caution that second-round price effects may justify another rate hike.

• Nearly two-thirds of economists surveyed in August anticipate that the BOJ will implement another rate hike later this year.

• Immediate resistance is located at 148.70(Higher BB ), any close above will push the pair towards 149.12 (38.2%fib).

•  Support is seen at 147.80(50%fib) and break below could take the pair towards  147.57 (SMA 20 ).

Recommendation: Good to buy around 148.20 with stop loss of 147.50 and target price of 149.00