FxWirePro: USD/JPY rises slightly, holding a positive bias

• USD/JPY edged higher on Friday as the dollar continued to strengthened as surging oil prices raised inflation concerns  .

• The war, less than two weeks old, has triggered global economic turmoil, leaving policymakers uncertain whether to tighten or ease policy. 

• The conflict-driven fuel surge adds to higher import costs from the weak yen, pushing firms to raise prices and keeping inflation above the BOJ’s target for nearly four years.

• Speaking days after the February 28 U.S. strike on Iran, Kazuo Ueda said the conflict could hurt Japan’s economy by worsening its terms of trade, but warned it could also lift underlying inflation.

•  The BOJ is expected to keep rates unchanged next week, while Ueda is likely to reaffirm the bank’s commitment to further rate hikes and signal room for near-term action.
 
•  Immediate resistance is located at 159.74(23.6%fib), any close above will push the pair towards 160.00(Psychoogical level).

•  Support is seen at 159.00 (Psychological level) and break below could take the pair towards 157.72(38.2%fib ).

Recommendation: Good to buy  around 159.20, with stop loss of 158.50 and target price of 159.90