FxWirePro: USD/JPY edges up, remains on front foot

• USD/JPY edged higher on Thursday as the dollar strengthened as surging oil prices raising inflation concerns and increasing the likelihood that central banks may adopt more hawkish policy stances.

• Oil rose for a second day as fears of a prolonged Iran war outweighed a coordinated reserve release by the International Energy Agency, which approved a record 400 million-barrel release.

• Iran stepped up attacks on merchant ships in the Strait of Hormuz, bringing the number of vessels hit since the conflict began to at least 16, while warning oil prices could surge to $200 a barrel.

• Meanwhile, weak yen has significantly raised the cost of imports for Japanese businesses, particularly energy and commodities priced in dollars. These higher import costs are a key factor contributing to inflationary pressures in Japan.

•  Japanese Finance Minister Katayama and other government officials are currently engaged in budget discussions in the Japanese parliament, known as the National Diet of Japan, which may partly explain the lack of immediate reaction to currency movements.
 
•  Immediate resistance is located at 158.00(Psychological level), any close above will push the pair towards 158.43(Higher BB).

•  Support is seen at 156.57 (38.2%fib) and break below could take the pair towards 155.43(SMA 20 ).

Recommendation: Good to buy  around 158.80, with stop loss of 158.30 and target price of 159.50