FxWirePro: USD/JPY gains some ground but bearish outlook persists

 • USD/JPY firmed on Friday as greenback rebounded after data showed new applications for unemployment benefits fell last week 

 •  U.S. initial jobless claims fell by 1,000 to 209,000 in the week ended January 24, while the previous week’s figure was revised up to 210,000

• The yen is up nearly 2% this month and has gained as much as 4.6% from January lows.

• News that the New York Federal Reserve conducted a dollar/yen rate check sparked the  yen rally, intensifying speculation about coordinated US-Japan currency measures..

• Market participants continue to factor in the threat of unilateral action by Japanese authorities following a string of verbal cautions.

• Data on Friday showed core inflation in Japan’s capital fell to a 15-month low in January, reflecting the impact of fuel subsidies and slowing food costs..

•Separate data released on Friday showed Japan's factory output edged down 0.1% in December from the previous month, compared with a median market forecast for a 0.4% dip.

• Immediate resistance is located at 153.94(38.2%fib), any close above will push the pair towards 155.5(50%fib).

•  Support is seen at 152.90(Daily low) and break below could take the pair towards 152.02 (23.6%fib)

Recommendation: Good to sell around 153.40, with stop loss of 154.50 and target price of 153.00