FxWirePro :USD/JPY edges up but struggles to extend gains

• USD/JPY ticked upon on Wednesday as traders braced for crucial inflation reports this week that could help define the size and scope of interest rate cuts from the Federal Reserve for next week and beyond..

•  Last week’s weak jobs data locked in expectations of Fed easing at the September 16–17 meeting, leaving investors debating a 25  or 50 basis-point cut.

• The impact of tariffs on prices will be tested this week with US PPI out Wednesday and due on US CPI Thursday.

• Traders are fully pricing in a 25 bps cut next week and have ascribed a 5% chance to a 50 bps reduction. They anticipate 66 bps of easing this year.

• Meanwhile, global political developments are in view, with Japan set to replace Ishiba as prime minister and France facing fiscal challenges alongside its fifth leader in two years.

•  Immediate resistance is located at 147.67(50%fib), any close above will push the pair towards 148.50(Higher BB).

• Support is seen at 146.61(Lower BB) and break below could take the pair towards  146.30 (61.8%fib).

Recommendation: Good to buy around 147.40 with stop loss of 146.60 and target price of 148.10