FxWirePro: USD/JPY edged higher but the overall bearish outlook remains intact

 • The USD/JPY edged higher   but gains were limited as traders digested minutes from the Bank of Japan’s December meeting.

• Minutes from the Bank of Japan’s December meeting showed policymakers flagged rising inflation pressures driven by a weak yen and labour shortages as key factors influencing the timing of further interest rate hikes.

• The board signaled it is ready to keep raising rates despite already lifting the policy rate to a 30-year high of 0.75% in December.

• The minutes showed the nine-member board agreed that future rate hikes would depend on economic conditions and whether inflation forecasts are realized.

•A weak yen has raised concerns for policymakers, as it increases living costs for households ,a key issue ahead of Japan’s general election on February 8.

• Immediate resistance is located at 153.13(50%fib), any close above will push the pair towards 154.00(Psychological level).

•  Support is seen at 151.55(Lower BB) and break below could take the pair towards 150.48(61.8%fib)

Recommendation: Good to sell around 153.00, with stop loss of 154.50 and target price of 152.50