FxWirePro: USDJPY neutral in the near-term, scope for downward resumption

 • USD/JPY traded flat   on Wednesday as investors were cautious  amid intervention fears, hawkish BoJ expectations.  .

• Investors also eyed the Bank of Japan’s policy meeting later this week, where rates are widely expected to stay unchanged following a December hike.

•Traders remained alert to potential yen intervention amid worries about the impact of a weaker currency on domestic inflation.

• Japan's chief cabinet secretary said on Tuesday the government was watching long-term rates moves closely.

•Inflation has been running above the Bank of Japan's target for nearly four years and Takaichi's platform of more spending is driving worries it gets out of hand and has been pushing down on the currency.
 
• Immediate resistance is located at 159.01(23.6%fib), any close above will push the pair towards 160.00 (Psychological level).

•  Support is seen at 157.31(SMA 20) and break below could take the pair towards 156.72 (38.2%fib)

Recommendation: Good to sell around 158.14, with stop loss of 159.50 and target price of 157.50