FxWirePro: USD/JPY gaining momentum for a move towards 155.00 level

• USD/JPY advanced on Monday  as yen weakened   amid reports that Prime Minister Sanae Takaichi’s government may soften its commitment to fiscal consolidation.

• According to report, Japan’s government intends to press the Bank of Japan to balance monetary policy toward sustaining strong economic growth while maintaining price stability.

• The package will center on measures to ease the impact of rising living costs on households, boost investment in crisis management and growth sectors, and strengthen Japan’s defense capabilities.  

• The government is expected to finalise the package on November 21, marking Prime Minister Sanae Takaichi’s first major economic initiative since taking office last month.

• Meanwhile, the Bank of Japan’s October Summary of Opinions showed policymakers remain focused on achieving steady wage growth, viewing it as a crucial factor in determining the timing of future policy moves.

• Markets remain unsure about when the BOJ will raise rates next, with some participants pricing in a potential hike as early as December.

• Immediate resistance is located at 154.43(23.6%fib), any close above will push the pair towards 155.00(Psychological level).

•  Support is seen at 152.92 (38.2%fib) and break below could take the pair towards 152.61 (SMA 20)

Recommendation: Good to buy  around 153.80, with stop loss of 152.20 and target price of 155.00