FxWirePro: USD/JPY loses momentum but outlook is bullish

• USD/JPY edged lower on Monday as the yen gained support after comments from Japan’s Finance Minister Satsuki Katayama on the recent sharp depreciation of the Japanese currency.

• Satsuki Katayama said on Monday the government is ready to take decisive action against excessive FX volatility  .

• The warning from Satsuki Katayama comes as the yen nears ¥160 per dollar, putting traders on alert for possible intervention by Japanese authorities.

• Meanwhile, The Bank of Japan is expected to hold rates Thursday but maintain a rate-hike bias as a weak yen and rising oil prices lift inflation risks..

•  Investors will watch Governor Kazuo Ueda’s post-meeting briefing for clues on the timing of the next rate hike and how the Bank of Japan balances supporting the economy and managing inflation risks.
 
•  Immediate resistance is located at 159.90(23.6%fib), any close above will push the pair towards 160.63(Higher BB).

•  Support is seen at 158.59 (March 12th low) and break below could take the pair towards 157.61(38.2%fib ).

Recommendation: Good to buy  around 159.00, with stop loss of 158.30 and target price of 159.80