FxWirePro: USD/JPY momentum builds ahead of key data release

 • USD/JPY moved above 148.00 level on Tuesday as the dollar gained some traction ahead of U.S. inflation figures.

•  Market focus is firmly on the upcoming U.S. consumer price index (CPI) report, scheduled for release at 12:30 GMT, as investors look for fresh clues on the Federal Reserve’s interest rate outlook.

• Economists   expect core CPI to have risen 0.3% in July, lifting the annual rate to 3% and keeping it above the Federal Reserve’s 2% target.

• In the 12 months through July, the CPI is forecast to have advanced 2.8% after rising 2.7% in June.

• Economists say food prices are being driven higher by farm labor shortages, stemming from the Trump administration’s deportation of undocumented migrants, as well as by tariffs.

• Immediate resistance is located at 148.05(SMA 20 ), any close above will push the pair towards 149.55(61.8%fib).

•  Support is seen at 146.73(50%fib) and break below could take the pair towards  145.41(Lower BB).

Recommendation: Good to buy around 147.90, with stop loss of 147.30 and target price of 148.70