FxWirePro: USD/JPY edges higher as traders monitor Middle East developments

• USD/JPY edged higher but gains were limited   as investors awaited fresh developments from the Middle East and new trading flows following the return of major financial centres..
    
• Market sentiment stayed fragile after fresh U.S. military strikes in southern Iran, while conflicting signals from President Donald Trump on Iran policy kept traders wary.

• On the data front,Japan's core consumer inflation rate excluding one-off factors, as measured by the central bank's new gauge, hit 2.8% in April, exceeding its 2% target and accelerating from 2.5% in March, the Bank of Japan said on Tuesday.

• The new index, which strips ⁠out institutional factors such as education and energy-related subsidies, showed a much faster year-on-year rise than the 1.4% rate in the benchmark core consumer price index figure the government announced last week.
 
•  Immediate resistance is located at 159.06 (38.2%fib), any close above will push the pair towards 159.87(April 23rd high).

•  Support is seen at 158.28 (SMA 20) and break below could take the pair towards 157.81(50%fib).

Recommendation: Good to buy around 158.90, with stop loss of 158.20 and target price of 159.50