• USD/JPY strengthened on Friday as investors assessed Tokyo’s inflation report.
• Data revealed that Tokyo’s core inflation rate decreased to 2% in September, down from 2.4% in August, aligning with forecasts.
•Looking ahead ,investors will keep an eye on the personal consumption expenditures price index due to be released later on Friday.
• A daily close below 38.2%fib will further improve bullish outlook, and open the possibility of rally towards 147.00.
• Immediate resistance is located at 146.10 (38.2%fib), any close above will push the pair towards 147.21 (Sep 3rd high).
• Support is seen at 144.48 (5DMA) and break below could take the pair towards 144.00 (Psychological level).
Recommendation: Good to buy around 145.50, with stop loss of 144.70 and target price of 146.50
