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FxWirePro: USD/JPY dips as yen strengthens, markets watch for Tokyo intervention

•   USD/JPY drifted lower  on Thursday as investors eyed for signs of intervention after repeated warnings from authorities.

• Prime Minister Sanae Takaichi on Wednesday dismissed the possibility of a British-style “Truss moment” in Japan, saying her expansionary fiscal policy would not trigger a loss of market confidence.

•Japanese currency has weakned steadily since early October reflects investor concern over Takaichi’s fiscal plans and uncertainty on BoJ policy timing

• The BoJ may signal a rate hike next month, with analysts noting the central bank could follow a steadier path to shift the currency’s course.

• Immediate resistance is located at 156.69 (Daily high), any close above will push the pair towards 157.76 (23.6%fib).

• Support is seen at 155.62 (38.2%fib) and break below could take the pair towards 155.08 (SMA20)

Recommendation: Good to buy around 155.80, with stop loss of 155.50 and target price of 157.00

  • Market Data
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