FxWirePro: USD/JPY dips as yen strengthens ahead of BOJ policy meeting

 • USD/JPY dipped on Tuesday as the yen strengthened on expectations the Bank of Japan will raise interest rates at Friday’s policy meeting.

• The Bank of Japan is expected to raise interest rates on Friday to a three-decade high and signal further hikes, ending the year with two increases despite U.S. tariff headwinds and the inauguration of a dovish prime minister..

 • The BOJ is widely expected to raise short-term interest rates to 0.75% from 0.5% at a two-day policy meeting ending on Friday.

• Even with a hike, Japan’s policy rate would remain low globally, but it would mark another key step in Governor Kazuo Ueda’s push to normalise monetary policy..

• Markets attention will be on Ueda’s post-meeting remarks for hints on the next steps after he effectively lined up a December hike earlier this month.

• Immediate resistance is located at 155.48(38.2%fib), any close above will push the pair towards 155.95(SMA 20).

•  Support is seen at 154.55 (Lower BB) and break below could take the pair towards 153.77 (50%fib)

Recommendation: Good to sell  around 154.90 with stop loss of 155.60 and target price of 154.10