FxWirePro: USD/JPY gains upside momentum as bulls take charge

• USD/JPY strengthened  Friday as greenback  firmed as mounting inflationary pressures from higher energy prices fuelled bets of a Federal Reserve rate hike this year.

• Data on Thursday showed U.S. retail sales increased further in April while weekly initial jobless claims figures pointed to stability in the labour market..

• The greenback's strength pushed the yen to the weaker side of 158 per dollar and kept traders on alert for further intervention from Tokyo.

• Japan’s wholesale inflation hit a three-year high in April as the Iran war drove up oil and chemical prices, boosting expectations of a BOJ rate hike soon. 

• The data came after a Bank of Japan (BOJ) policymaker called for raising rates "at the earliest stage possible" as soaring fuel costs from the Middle East war stoked price pressures.

 
•  Immediate resistance is located at 158.74(38.2%fib), any close above will push the pair towards 159.00(Psychological level).

•  Support is seen at 158.24 (SMA 20) and break below could take the pair towards 156.78(50%fib).

Recommendation: Good to buy around 158.30, with stop loss of 157.50 and target price of 159.00