FxWirePro: USD/JPY firms as bearish yen sentiment persists

• USD/JPY firmed on Wedneday as  hawkish comments from the Federal Reserve reinforced expectations for further interest-rate hikes, supporting the dollar against the yen.

• Investors are now anticipating further tightening from central banks, with Federal Reserve officials flagging the possibility of more hikes if inflation does not ease..

• Attention remains on Tokyo’s willingness to intervene if yen weakness intensifies, with Japan’s market holiday on Wednesday potentially resulting in thinner liquidity and amplifying currency moves.

•Japan’s markets are shut for a holiday, while analysts see the thin trading conditions as an opportune window for authorities to step in if needed.

• Oil prices fell to a near three-week low on Wednesday, which could provide some support for the yen by easing concerns over Japan’s import costs and energy-related trade pressures.

• Immediate resistance is located at 160.03 (38.2%fib), any close above will push the pair towards 160.92(Higher BB).

•  Support is seen at 156.90(50%fib) and break below could take the pair towards 156.00(Psychological level)

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