FxWirePro: USD/JPY gains above 160 level ahead of BOJ policy meeting

 • USD/JPY gained  on Friday   as yen as investors awaited the Bank of Japan's policy meeting next week.

  • The Bank of Japan is expected to raise interest rates to a 31-year high next week and signal further tightening, remaining focused on inflation risks stemming from the Middle East conflict despite the governor's absence.

• The move would align the BOJ with other central banks tightening policy, including the European Central Bank, which delivered a widely expected rate hike on Thursday.

• The hike would be the first since December, marking a shift away from the BOJ’s cautious stance and the remaining legacy of its earlier radical stimulus, as it moves toward a more conventional focus on fighting inflation.
 
• Immediate resistance is located at 160.70(23.6%fib), any close above will push the pair towards 161.01 (Higher BB).

•  Support is seen at 159.68 (SMA 20) and break below could take the pair towards 158.49 (38.2%fib)

Recommendation: Good to buy around 160.20, with stop loss of 159.50 and target price of 160.70