FxWirePro: USD/ JPY downside pressure builds, key support level in focus

 • The USD/JPY slipped lower on Thursday  as growing expectations of a January rate hike by the Bank of Japan   supported the yen .
• Bank of Japan Governor Kazuo Ueda announced Thursday that the central bank will consider a rate hike next week, guided by its updated quarterly growth and inflation forecasts.

  • Governor Ueda stated that U.S. policy and domestic wage talks are key factors in the rate hike decision.

•Markets currently estimate a 78% likelihood of a 25 basis point increase, reflecting growing expectations of monetary tightening.
• At GMT 08:22 the pair was trading down 0.34 percent  at 155.93.
 
• Immediate resistance is located at 156.59(38.2%fib), any close above will push the pair towards 158.32 (23.6%fib).

•  Support is seen at 156.06(50%fib) and break below could take the pair towards 154.00 (Psychological level).

Recommendation: Good to sell  around 156.00with stop loss of 156.60 and target price of 155.50