FxWirePro: USD/JPY edges lower as investors assess Takaichi’s comments

• USD/JPY edged lower  on Monday as markets digested comments from Japanese Prime Minister Sanae Takaichi.

• Japanese Prime Minister Sanae Takaichi on Monday pledged to keep bond issuance under control and respond swiftly to excessive market volatility, seeking to reassure investors as concerns over Japan's deteriorating fiscal position continue to push government bond yields higher.

• The government will pursue fiscal sustainability while stepping up spending to enhance growth potential, including through a review of existing tax breaks and subsidies, she said.

• The remarks highlight growing concern in Tokyo over rising Japanese government bond (JGB) yields, which are increasing borrowing costs and could make it more expensive for the government to finance the prime minister's ambitious spending plans.

• Fiscal policy is expected to become a key focus of parliamentary debate in Japan, as concerns over the fiscal positions of major advanced economies contribute to a broader rise in global bond yields.

 
• Immediate resistance is located at 158.67(50%fib), any close above will push the pair towards 159.77(Higher BB).

•  Support is seen at 156.95(Oct 2nd low) and break below could take the pair towards 156.42(Lower BB)

Recommendation: Good to buy  around 157.40, with stop loss of 156.40and target price of 158.50