FxWirePro: USD/JPY edged higher as dollar gains as peace talks falter

• USD/JPY edged higher on Monday  as failure of U.S.-Iran peace talks over the weekend, prompting renewed safe-haven demand for the U.S. dollar..

• Unresolved geopolitical tensions continue to support the U.S. dollar, although traders remain cautious heading into the weekend.

• The U.S. military said it will begin a blockade of all maritime traffic entering and exiting Iranian ports and coastal areas on Monday after weekend talks failed to reach a deal to end the war with Iran, jeopardizing a fragile two-week ceasefire. 

• Traders are awaiting a speech from Bank of Japan Governor Kazuo Ueda later on Monday which may provide clues about how the central bank will react to the energy shock caused by the Iran war, as the prospect dims of a rate hike at its next meeting ending on April 28.

• At the same time, there is a gradual shift in market attention back toward central bank policy signals. Japan’s Trade Minister Yoji Muto Akazawa hinted at potential policy measures that could support the yen and help contain inflation, reinforcing expectations that the Bank of Japan may consider a rate hike at its end-April meeting.
 
•  Immediate resistance is located at 160.32(23.6%fib), any close above will push the pair towards 160.78(Higher BB).

•  Support is seen at 159.22 (SMA 20) and break below could take the pair towards 158.82(38.2%fib ).

Recommendation: Good to buy  around 159.60, with stop loss of 158.60 and target price of 159.90