FxWirePro: USD/JPY downside pressure builds, key support level in focus

• USD/JPY dipped on Friday as stronger-than-expected Japanese consumer inflation reinforced expectations of a Bank of Japan rate hike.

• Japan's core inflation rose at its fastest annual pace in over two years in April, driven by steady increases in food prices, boosting expectations of another rate hike by the end of the year.

• Japan's core consumer price index (CPI), which excludes fresh food but includes energy, rose 3.5% year-over-year in April, beating expectations of a 3.4% gain and accelerating from March’s 3.2% increase.

• The data highlights the Bank of Japan's challenge in balancing persistent food-driven inflation with growth headwinds stemming from U.S. President Donald Trump's tariffs.
•  At GMT 06:40, the dollar was down  0.33% to 143.54 against the Japanese yen.

• Immediate resistance is located at 144.55 (May 22nd high), any close above will push the pair towards 145.66(50%fib).

• Support is seen at 143.26(38.2%fib) and break below could take the pair towards  141.44 (Lower BB  ).

• Recommendation: Good to sell around 143.60 with stop loss of 144.60  and target price of 142.00