FxWirePro: USD/JPY dips as Japanese Yen edges higher on verbal warnings

• The dollar slipped against the yen on Wednesday as traders digested fresh verbal warnings from Japanese officials signalling a stronger stance on the currency.

•  Japan's top currency official Atsushi Mimura said markets should pay close attention to the "very clear" message delivered by Japan and the United States last week, signalling a willingness to intervene if the yen falls too sharply.

•  US President Donald Trump raised concerns over the yen's weakness during a summit with Japanese Prime Minister Sanae Takaichi, Japan's Finance Minister Satsuki Katayama said on Friday, providing an unusually detailed account of their currency discussions..

• Japan's policymakers are increasingly concerned about the weak yen, as it pushes up import costs, especially fuel prices that have climbed sharply due to the Middle East war..

•Wary of the inflationary impact from a weak yen, the Bank of Japan raised ‌interest rates ⁠to a 31-year high of 1.25% earlier this month following a hike in June.

• Immediate resistance is located at 157.95 (50%fib), any close above will push the pair towards 158.97(Sep 28th high).

•  Support is seen at 156.08(SMA 20) and break below could take the pair towards 155.67(38.2%fib)

Recommendation: Good to sell  around 157.00, with stop loss of 157.50 and target price of 156.00