FxWirePro: USD/JPY uptrend loses steam, remains on bullish path

• USD/JPY eased slightly on Friday  as the Japanese yen firmed as market digested  Tokyo consumer price index and retail sales data.

• Tokyo’s core inflation picked up pace in October, holding above the BOJ’s 2% target and fueling speculation that policymakers could soon move toward another interest rate increase..

 • Tokyo’s core consumer price index (CPI), which excludes volatile fresh food prices, increased 2.8% year-on-year in October, beating expectations for a 2.6% rise and quickening from 2.5% in September, government data showed on Friday.

 • Japan’s retail sales rose 0.5% in September from a year earlier, falling short of market expectations for a 0.7% increase, government data showed on Friday.

• The data came after the Bank of Japan on Thursday kept its policy rate unchanged at 0.5%, a decision that saw two board members dissent, citing concerns over widening inflationary pressures.
 
• Immediate resistance is located at 154.42(23.6%fib), any close above will push the pair towards 154.72(Higher BB).

•  Support is seen at 152.22 (38.2%fib) and break below could take the pair towards 150.782 (38.2%fib)

Recommendation: Good to buy  around 153.80, with stop loss of 153.20 and target price of 154.70