FxWirePro: USD/JPY eases slightly but outlook is bullish

• USD/JPY eased slightly on Friday  after data showed Japan's core inflation accelerates in July.

• Japan’s core consumer inflation accelerated in July from a year earlier as businesses passed on higher import costs linked to the weak yen and the U.S.-Israeli war with Iran, strengthening the case for a BOJ rate hike.

• The core consumer price index, which includes energy but excludes volatile fresh food prices, rose 1.8% year-on-year in July, matching the median forecast..

• After rising 1.6% in June, it stayed below the BOJ’s 2% target for a seventh straight month, largely reflecting fuel-cost subsidies..

•The data will be among factors the Bank of Japan will scrutinise at its next policy meeting on September 17 and 18, when it is widely expected to ​raise its key rate to 1.25% from 1%.
 
• Immediate resistance is located at 158.57(50%fib), any close above will push the pair towards 159.50 (50%fib).

•  Support is seen at 157.78 (38.2%fib) and break below could take the pair towards 156.60(23.6%fib).

Recommendation: Good to sell  around 158.80, with stop loss of 157.50 and target price of 159.50