FxWirePro: USD/JPY loses some steam but outlook is strongly bullish

 • USD/JPY slipped modestly on Friday as attention focused on Takaichi’s fiscal policies and BOJ stance.

 • Takaichi, set to become Japan’s first female prime minister, said Thursday that the central bank is responsible for monetary policy, but its actions should reflect government priorities.

 • A supporter of expansionary fiscal and monetary policies, Takaichi has emphasized the importance of reflating the economy and said her immediate focus will be on measures to ease the impact of rising living costs on households.

•  On Friday, the yen was poised for its steepest weekly fall in a year after Takaichi’s unexpected victory reduced hopes of an imminent rate increase.

• Traders are assigning roughly a 45% probability of a BOJ rate hike in December, with a full 25-basis-point increase expected only by March.

•On the data front, Japan’s wholesale prices increased 2.7% year-on-year in September, unchanged from August, reflecting persistent cost pressures likely to maintain pressure on the central bank to raise rates.
 
• Immediate resistance is located at 153.40(Higher BB), any close above will push the pair towards 154.43 (Higher BB).

•  Support is seen at 152.28 (38.2%fib) and break below could take the pair towards 151.77 (Oct 8th low)

Recommendation: Good to buy  around 152.50, with stop loss of 151.60 and target price of 154.00