• USD/JPY edged up in quiet trading as investors awaited U.S. inflation data ahead of the September FOMC meeting.
• U.S. inflation likely picked up in August from higher gas prices and tariffs, but remains moderate, keeping markets confident in next week’s Fed rate cut.
• The Labor Department’s CPI release on Thursday may stoke fears of stagflation amid recent disappointing employment figures.
• Next Wednesday’s Fed meeting is expected to deliver a 25-basis-point rate cut, while markets assign a small probability to a 50-point reduction, according to CME FedWatch.
• Immediate resistance is located at 148.55(38.2%fib), any close above will push the pair towards 148.75 (Higher BB).
• Support is seen at 146.86(50%fib) and break below could take the pair towards 146.50 (Lower BB ).
Recommendation: Good to buy around 147.60 with stop loss of 147.00 and target price of 148.50
