FxWirePro: USD/JPY edges higher but bulls lack punch

•   USD/JPY edged higher  on Friday as Japan’s fiscal worries offset upbeat economic data..

• Investor confidence has been shaken by Japan’s worsening fiscal position amid the rollout of a massive stimulus package.

• Data showed, core inflation in Tokyo remained well above the central bank’s 2% target in November, as companies continued to pass on higher food-related costs, bolstering the case for a near-term rate hike.

•Tokyo’s core consumer price index, which strips out fresh food prices, rose 2.8% in November from a year earlier, unchanged from October and broadly in line with the median forecast of a 2.7% increase.

• Separate October data showed retail sales and factory output both increased, while the unemployment rate held steady at 2.6%, indicating the world’s fourth-largest economy is withstanding the impact of higher U.S. tariffs for now.

• The data will be closely watched by the Bank of Japan as it weighs whether to raise interest rates in December or delay the move until next year.

• Immediate resistance is located at 157.87 (23.6%fib), any close above will push the pair towards 158.58 (Higher BB).

• Support is seen at 155.59 (38.2%fib) and break below could take the pair towards 155.20(SMA20)

Recommendation: Good to buy around 156.30, with stop loss of 155.50 and target price of 157.00