• USD/JPY hit two week low on Tuesday as the Japanese yen firmed on growing bets that the Bank of Japan (BoJ) will raise interest rates again this year.
• Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank may continue raising interest rates if the Japanese economy shows signs of recovery from the anticipated impact of higher U.S. tariffs, though he cautioned that the overall economic outlook remains highly uncertain.
• After exiting its decade-long ultra-loose monetary stimulus program last year, the Bank of Japan took a significant step by raising its benchmark interest rate to 0.5% in January. This move signals a shift toward a more normalized monetary policy stance as the central bank responds to improving economic conditions.
• The BOJ has also indicated its willingness to continue raising borrowing costs incrementally if Japan’s economy demonstrates steady, moderate growth.
• At GMT 06:47, the dollar was down 0.32% to 144.41 against the Japanese yen.
• Immediate resistance is located at 145.55 (Daily high), any close above will push the pair towards 146.37 (50%fib).
• Support is seen at 144.20(38.2%fib) and break below could take the pair towards 142.46(May 7th low).
• Recommendation: Good to sell around 144.50 with stop loss of 145.60 and target price of 143.60


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