FxWirePro: USD/JPY attracts selling interest, vulnerable to more downside

 • USD/JPY dipped on Tuesday as the yen recovered some of the prior day’s losses, after weak Japanese data had fueled expectations of increased government stimulus.

• The pair rallied yesterday from 152.57 to 153.62 on  after weaker-than-expected Japanese GDP data weighed on the yen, encouraging fresh buying interest in the dollar.

• Aside from the weak Japan GDP data released yesterday, there are no major fundamental catalysts currently driving yen weakness.

• There was little market reaction to the recent meeting between Kazuo Ueda and Sanae Takaichi, with no significant policy signals emerging.

• Trading activity in Asia is expected to remain subdued due to Lunar New Year holidays, with several key financial centers closed.

• Immediate resistance is located at 154.00(Psychological level), any close above will push the pair towards 154.87(50%fib).

•  Support is seen at 152.71(61.8%fib) and break below could take the pair towards 150.90(Lower BB)

Recommendation: Good to sell around 153.00, with stop loss of 153. 80 and target price of 152.30