FxWirePro: USD/JPY strongly bullish despite downside attempts

• USD/JPY dipped on Wednesday  but remained on the weak side of the psychologically important 160-per-dollar threshold despite overwhelming expectations of a Bank of Japan rate hike this month.

•U.S. Treasury Secretary Scott Bessent voiced strong support for "decisive" monetary steps to combat yen weakness in a meeting with BOJ Governor Kazuo Ueda, the Treasury Department said.

•Ueda told reporters he hoped to discuss with his board at this month's meeting whether the economy is moving in line with its forecast, and whether inflation risks were heightening.

•The BOJ's hawkish board member, Hajime Takata, said on Wednesday the bank should conduct interest rate hikes nimbly in response to inflationary pressures.

•Investors ​are now ⁠awaiting the ADP employment report, due later in the day, and the more crucial nonfarm payrolls data on Friday.

• Immediate resistance is located at 160.40 (Higher BB), any close above will push the pair towards 161.54(38.2%fib).

•  Support is seen at 159.72(38.2%fib) and break below could take the pair towards 159.25(SMA 20)

Recommendation: Good to buy  around 159.50, with stop loss of 159.00 and target price of 161.00