FxWirePro: USD/JPY sustains gains as uptrend remains strong

• USD/JPY remained bid on Thursday as the pair was boosted by robust US economic data and hawkish comments from Fed officials .

• US business activity raced to a more than five-year high in September, data on Wednesday showed, though strong demand strained supply chains and pushed prices higher.

• Central bank officials maintained a hawkish tone as rising oil prices drove inflationary pressures..

• Federal Reserve Governor Michael Barr said on Wednesday the central bank's recent rate hike was part of efforts to recalibrate borrowing costs and signalled more increases may be needed. Markets are anticipating speeches from other Fed officials on Thursday, including New York Fed President John Williams and Cleveland Fed President Beth Hammack..

• Former Bank of Japan board member Makoto Sakurai said on Thursday that the central bank is likely to raise interest rates roughly once every three months, potentially taking the policy rate to around 2% by June next year as it responds to mounting inflationary pressures..

• Immediate resistance is located at 159.67 (38.2%fib), any close above will push the pair towards 160.84(Higher BB).

•  Support is seen at 156.72(SMA 20) and break below could take the pair towards 156.25(38.2%fib)

Recommendation: Good to buy  around 158.10, with stop loss of 157.50 and target price of 159.00