• USD/JPY edged lower on Wednesday as investors adopted a cautious stance ahead of the release of US September consumer price index data later in the day,
•The US Consumer Price Index (CPI) report is due at 1230 GMT, followed by the Producer Price Index (PPI) and retail sales data on Thursday.
•New York Fed President John Williams reaffirmed his view that the US central bank may need to raise interest rates once more this year in its bid to lower inflation.
•Meanwhile, Fed Governor Christopher Waller said the recent rise in US bond yields reflects stronger economic growth rather than higher inflation expectations, which remain "well-anchored".
•Markets are pricing in about a 22% chance of a US rate hike this month and an 88% probability of an increase in December, according to CME's FedWatch Tool.
• Immediate resistance is located at 158.14(50%fib), any close above will push the pair towards 159.20 (23.6%fib).
• Support is seen at 157.80(SMA 20) and break below could take the pair towards 157.99(61.8%fib)
Recommendation: Good to buy around 158.00, with stop loss of 157.40and target price of 158.70


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