• USD/JPY strengthened on Friday after data showed the Japan's annual core consumer inflation hit 2.0% in January,
• Japan’s annual core consumer inflation fell to a two-year low, matching the Bank of Japan’s 2% target in January, according to Friday’s data.
• The year-on-year rise in Japan’s core consumer price index (CPI), excluding volatile fresh food, matched the median market forecast at 2% in January, down from December’s 2.4% increase
• The data comes amid mixed signals in the economy, which showed minimal growth in the final quarter of last year, while exports surged and manufacturers’ confidence has strengthened so far in 2026..
• Technical signals are bullish as RSI is heading down at 37, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 156.46 (38.2%fib), any close above will push the pair towards 157.65 (Higher BB).
• Support is seen at 145.57 (SMA 20) and break below could take the pair towards 154.20 (50%fib)
Recommendation: Good to buy around 155.00, with stop loss of 154.50 and target price of 155.80
