FxWirePro: USD/JPY retreats slightly but trend is still bullish

 • USD/JPY   eased  slightly on Tuesday  as yen firmed after comments from Japan finance minister Katsunobu  Kato.

• Finance Minister Katsunobu Kato said on Tuesday that Japan must craft a new economic strategy suited to today’s conditions, where inflation has emerged as a concern, unlike the deflationary environment addressed by “Abenomics”.

• Asked about the yen’s recent weakness, Kato reiterated that the government will closely monitor the forex market for excessive volatility and disorderly movements..

• Kato’s remarks come as the ruling Liberal Democratic Party’s newly elected leader, Sanae Takaichi known for her strong backing of Abenomics is widely expected to advance reflationary policies..
 
• Immediate resistance is located at 153.40(23.6%fib), any close above will push the pair towards 154.00(Psychological level).

•  Support is seen at 151.14 (38.2%fib) and break below could take the pair towards 149.43  (50%fib)

Recommendation: Good to buy  around 151.70, with stop loss of 151.00 and target price of 153.00