FxWirePro: USD/JPY edges higher as dollar recovers some lost ground

•USD/JPY  gained some traction on Monday as weekend U.S.-Iran tensions pushed oil prices up.

• President Donald Trump said the U.S. Navy seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored warnings while leaving Hormuz.

•  Iran scrapped plans to reopen Hormuz due to the U.S. blockade and ruled out participating in further negotiations.

• Oil prices surged more than 5%, exerting downward pressure on currencies of oil-importing economies such as Japan.

• The market's focus will also be on the Bank of Japan meeting later this month. Governor Kazuo Ueda has refrained from pre-committing to an April rate hike with the war muddling the outlook, but he left a few hawkish signs after last week's IMF meetings, suggesting tighter policy by June.
 
•  Immediate resistance is located at 159.25(SMA 20), any close above will push the pair towards 160.14(Higher BB).

• Support is seen at 158.64 (38.2%fib) and break below could take the pair towards 158.25(Lower BB ).

Recommendation: Good to buy  around 158.90, with stop loss of 158.00 and target price of 159.60