• USD/JPY eased slightly on Friday after data showed Japan's core inflation accelerates in July.
• Japan’s core consumer inflation accelerated in July from a year earlier as businesses passed on higher import costs linked to the weak yen and the U.S.-Israeli war with Iran, strengthening the case for a BOJ rate hike.
• The core consumer price index, which includes energy but excludes volatile fresh food prices, rose 1.8% year-on-year in July, matching the median forecast..
• After rising 1.6% in June, it stayed below the BOJ’s 2% target for a seventh straight month, largely reflecting fuel-cost subsidies..
•The data will be among factors the Bank of Japan will scrutinise at its next policy meeting on September 17 and 18, when it is widely expected to raise its key rate to 1.25% from 1%.
• Immediate resistance is located at 158.57(50%fib), any close above will push the pair towards 159.50 (50%fib).
• Support is seen at 157.78 (38.2%fib) and break below could take the pair towards 156.60(23.6%fib).
Recommendation: Good to sell around 158.80, with stop loss of 157.50 and target price of 159.50
