FxWirePro: USD/JPY momentum slows, bulls fail to push higher

 • USD/JPY dipped on Thursday   but downside was limited as traders remained reluctant to placemajor bets before the release of economic reports.

 • Markets largely shrugged off global geopolitical tensions this week, with currencies remaining mostly stable despite U.S. action in Venezuela and rising China–Japan frictions.

• The Bank of Japan said on Thursday regional economies are gradually recovering, with many firms seeing the need to keep raising wages, reinforcing optimism that could support further interest rate hikes..

•The central bank said all nine regions were either picking up or gradually recovering, keeping its economic assessment unchanged from three months ago.

•The BOJ will factor regional branch input into its growth and inflation review at the January 22–23 meeting, with many analysts expecting rates to remain unchanged.

•The BOJ lifted its policy rate to a 30-year high of 0.75% last month, marking another key step away from decades of ultra-loose monetary policy.
 
• Immediate resistance is located at 157.68(23.6%fib), any close above will push the pair towards 157.97 (Higher BB).

•  Support is seen at 156.19(SMA 20) and break below could take the pair towards 155.49 (38.2%fib)

Recommendation: Good to sell around 156.70, with stop loss of 157.30 and target price of 156.00