FxWirePro: USD/JPY loses momentum but outlook is bullish

• USD/JPY eased slightly  on Wednesday  as market turned cautious amid Fed uncertainty, mounting tariff pressures.

• Donald Trump said on Tuesday he will decide on a nominee for the Federal Reserve Board by the end of the week, adding that he has narrowed his list of potential replacements for Fed Chair Jerome Powell to four candidates.

• The announcement came as U.S. services activity stalled in July, with surging input costs underscoring the negative effects of Trump’s aggressive tariffs on businesses.

• Japan’s real wages declined for a sixth straight month in June, as inflation outpaced pay growth, government data showed Wednesday.

• Real wages, adjusted for inflation, fell 1.3% in June year-on-year, after a revised 2.6% decline in May, signaling continued pressure on household purchasing power.

• Immediate resistance is located at 148.14(38.2%fib), any close above will push the pair towards 149.29(July 16th high).

•  Support is seen at 146.00(50%fib) and break below could take the pair towards  145.28 (Lower BB).

Recommendation: Good to buy around 147.40, with stop loss of 146.60 and target price of 148.20