FxWirePro: USD/JPY loses momentum but outlook is bullish

• USD/JPY edged lower on Friday as investors assessed the Bank of Japan’s June meeting minutes and Japan’s latest CPI data.
 
• Japan’s core consumer price index (CPI), excluding fresh food, rose 3.7% in May from a year earlier beating forecasts of 3.6% and up from April’s 3.5% marking the fastest annual pace since January 2023’s 4.2%.

• A separate index excluding both fresh food and fuel—closely watched by the Bank of Japan as a gauge of demand-driven inflation—rose 3.3% in May year-on-year, up from 3.0% in April.

• Minutes from the Bank of Japan’s April 30–May 1 meeting showed policymakers broadly supported further rate hikes, though some favored a pause due to U.S. trade uncertainty.

• At GMT 08:31 the  dollar was trading down  0.06% at 145.31 against Japanese yen   .

• Immediate resistance is located at 145.73 (50%fib), any close above will push the pair towards 146.48 (Higher BB).

• Support is seen at 144.30(June 8th low) and break below could take the pair towards  143.30(38.2%fib).

Recommendation: Good to bu y around 145.10, with stop loss of 143.60 and target price of 146.00