• USD/JPY hit three-and-a-half-month high as the dollar strengthened following an inflation report that reduced expectations for imminent Federal Reserve rate cuts.
• The dollar climbed against major currencies, nearing its highest level since June 20, as inflation data pointed to tariff-driven price pressures
• U.S. consumer prices rose 0.3% in June, matching forecasts and marking the biggest increase since January, data showed Tuesday.
• U.S. CPI rose 2.7% year-over-year in June, up from 2.4% in May, slightly above economists’ forecast of 2.6% and a 0.3% monthly gain.
• Traders have trimmed Fed easing expectations to roughly 43 basis points by year-end, from just above 50 bps at the week's start.
• Immediate resistance is located at 149.00(Psychological level), any close above will push the pair towards 151.31(23.6%fib).
• Support is seen at 148.20(38.2%fib) and break below could take the pair towards 146.93 (SMA 9).
Recommendation: Good to buy around 148.70, with stop loss of 148.00 and target price of 149.50


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