Jan 15 (Reuters) - Fundamental factors have pushed USD/JPY lower this week, however the daily chart shows the downside could well be limited.
The Japanese yen strengthened on the back of comments from BOJ Governor Kazuo Ueda, who said the central bank will raise interest rates and adjust the degree of monetary support if improvements in the economy and price conditions continue.
Finance Minister Katsunobu Kato on Wednesday also reiterated that the government would take appropriate action against excessive movement on the foreign exchange market, as the yen has seen high volatility ahead of a key monetary policy meeting.
Despite USD/JPY's setback since Friday's 158.88 peak, the highest level since July, the technical bias remains on the upside. Interim support comes in at the 156.47 Fibo, a 23.6% retrace of the 148.65 to 158.88 (December to January) EBS rise. Only a sustained break back under the December 20/31 155.97/156.02 lows would shift the overall bias back to the downside.
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(Martin Miller is a Reuters market analyst. The views expressed are his own)
((martin.miller@thomsonreuters.com))
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