FxWirePro: USD/JPY edges higher but bulls lack punch

• USD/JPY edged higher  on Friday as Yen   weakened slightly following the release of softer Tokyo consumer inflation figures.
    
• Annual core inflation in Tokyo remained below the BOJ’s 2% target for a fourth straight month in May, as fuel and tuition subsidies offset higher raw material costs linked to the U.S.-Israeli war on Iran. 

•  Tokyo core CPI, which excludes fresh food prices, rose 1.3% year-on-year in May, slowing from 1.5% in April and missing market forecasts of a 1.5% increase, marking a sixth straight month of easing inflation.

•  The slowdown in Tokyo core CPI, a key indicator of nationwide inflation trends, was mainly driven by subsidies aimed at reducing utility, water and tuition costs..
 
• Separate data showed Japan’s factory output rebounded in April, as strong AI-related demand offset weakness in sectors affected by the Middle East conflict, indicating the economy was coping with higher fuel costs for now.
 
• Immediate resistance is located at 159.69 (Daily high), any close above will push the pair towards 160.00(Psychological level).

•  Support is seen at 159.15 (50%fib) and break below could take the pair towards 158.35(SMA 20).

Recommendation: Good to buy around 159.20, with stop loss of 158.50 and target price of 159.90