FxWirePro: USD/JPY eases slightly but outlook is bullish

• USD/JPY eased slightly on Wednesday   as investors positioned for  key US inflation data  and Federal Reserve Chair Kevin Warsh’s speech later this week.

• Economists expect Wednesday’s data to show that the U.S. Personal Consumption Expenditures (PCE) price index, excluding volatile food and energy costs, rose 3.3% year-on-year in July.

•Federal Reserve Chair Kevin Warsh is set to deliver his closely watched keynote address at the annual Jackson Hole symposium on Friday, August 28, rather than Thursday

• Bank of Japan board member Naoki Tamura will represent Governor Kazuo Ueda at this week’s Jackson Hole symposium, as Ueda will skip the event due to a scheduling conflict.

•BOJ Deputy Governor Ryozo Himino will also deliver a speech and hold a news conference on Thursday, where he could deliver signs about the likelihood of a rate hike next month.
 
• Immediate resistance is located at 159.55(50%fib), any close above will push the pair towards 160.00 (Psychological level).

•  Support is seen at 158.78 (SMA 20) and break below could take the pair towards 157.60(38.2%fib).

Recommendation: Good to buy around 158.80, with stop loss of 157.50 and target price of 159.50