FxWirePro: USD/JPY dips as Japanese Yen consolidates near 40-year low

• USD/JPY traded just below the key 162.00 level on Friday  as investors digested Tokyo  core  inflation data.

• Market participants also remain alert to the risk of Japanese foreign exchange intervention, although authorities have so far refrained from acting despite the yen's continued weakness.

• Investors believe the Ministry of Finance may see limited benefits from intervention given the persistent strength of the U.S. dollar, while others argue that any sharp move beyond 162.00 could force officials to step in to curb excessive volatility..

• Tokyo’s annual core inflation accelerated in June, Friday data revealed, indicating growing price pressures stemming from the Middle East conflict and keeping the central bank on course to consider more rate hikes.

• Tokyo’s core consumer price index (CPI), excluding volatile fresh food items, increased 1.6% in June from a year earlier, data released on Friday showed, matching the median market forecast.
 
•  Immediate resistance is located at 161.820 (23.6%fib), any close above will push the pair towards 162.00(Psychological level).

•  Support is seen at 161.31(June 24th  low) and break below could take the pair towards 1 160.70(SMA 20).

Recommendation: Good to buy around 161.40, with stop loss of 160.70 and target price of 161.80