FxWirePro: USD/JPY dips as yen gains on Ueda remarks

 • USD/JPY dipped on Thursday as investors digested comments from Bank of Japan Governor Kazuo Ueda.

  • Kazuo Ueda said the Bank of Japan will closely review data at its March and April meetings, keeping the possibility of a near-term rate hike open, according to Yomiuri.

  • In the interview conducted on Tuesday, Ueda said the central bank will continue to raise interest rates if Japan makes progress in achieving its economic and price projections..

• Kazuo Ueda said the Bank of Japan does not need to wait for the April 1 Tankan survey, as it uses multiple indicators to decide on rate hikes

•The remarks highlight the readiness of the Bank of Japan to continue raising interest rates and support expectations of an early hike to prevent further yen weakness, which could increase import costs and inflation pressures.
 
• Immediate resistance is located at 156.48(38.2%fib), any close above will push the pair towards 157.48 (Higher BB).

•  Support is seen at 155.06 (SMA 20) and break below could take the pair towards 154.30 (50%fib)

Recommendation: Good to buy   around 156.10, with stop loss of 155.40 and target price of 157.50