• USD/JPY steadies around 153.65 on Wednesday as market focus turned to upcoming rate decisions by both the U.S. Federal Reserve and the Bank of Japan.
• The Fed's interest rate decision is due at 19:00 GMT. Markets forecast a 25 basis-point cut, while several analysts expect guidance for 2025 to be more hawkish.
• The Bank of Japan is expected to hold interest rates unchanged on Thursday, as officials grapple with the dilemma of balancing increasing inflation and a faltering economy.
• On the data front, Japan's exports grew more than expected in November, with total exports rising 3.8% year-on-year.
• Immediate resistance is located at 154.41 (23%fib), any close above will push the pair towards 155.00 (Psychological level).
• Support is seen at 153.17 (38.2%fib) and break below could take the pair towards 152.11(50%fib).
Recommendation: Good to buy around 153.50, with stop loss of 152.70 and target price of 154.20


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