FxWirePro: USD/JPY bulls gear up for next leg higher, eyes 149.00 level

• USD/JPY rose  on Friday as strong dollar and below-expectations Tokyo inflation data weighed on yen.

• Investors drove the dollar higher on Friday ahead of key events next week, including the Fed policy decision and Trump's looming trade deal deadline.

• Core consumer inflation in Tokyo eased in July but remained above the Bank of Japan’s 2% target, reinforcing expectations of another rate hike later this year, data showed Friday.

• Tokyo’s core consumer prices rose 2.9% in July year-on-year, just under the 3.0% market forecast and easing from June’s 3.1% increase.

• Meanwhile, a trade agreement with the U.S. could help the BOJ press ahead with rate hikes, though the ruling coalition’s loss in Sunday’s elections complicates the policy environment.

• Immediate resistance is located at 148.04(June 23rd high), any close above will push the pair towards 149.03(23.6%fib).

• Support is seen at 147.32(38.2%fib) and break below could take the pair towards  146.47(SMA 20).

Recommendation: Good to buy  around 147.50, with stop loss of 146.90 and target price of 149.00