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FxWirePro: USD/JPY slips lower but outlook is bullish

• USD/JPY slipped lower on Wednesday as growing expectations of another Bank of Japan rate hike supported the yen.

• The BoJ has maintained a negative interest rate policy since 2016, but pressure has been building for a change.

• Inflation continues to exceed the central bank’s 2% goal, supporting the case for further policy normalization.

•According to market data, the probability of a BoJ rate hike at its next policy meeting has risen to over 70%, up from roughly 50% a week earlier.

• Immediate resistance is located at 155.64 (50%fib), any close above will push the pair towards 159.96 (SMA 20).

•  Support is seen at 158.70 (Aug 14th low) and break below could take the pair towards 157.88 (38.2%fib).

Recommendation: Good to sell  around 159.00, with stop loss of 157.50 and target price of 158.50

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