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FxWirePro: USD/JPY outlook weaker on renewed downside pressure

• USD/JPY declined on Friday as the U.S. dollar lost strength ahead of President Donald Trump's anticipated announcement on reciprocal tariffs next week.

• Traders have experienced periods of optimism, hoping that the trade tariffs may not be as harsh as anticipated. However, concerns persist that they could harm economic growth and spark inflation once again.

• On the data front, Tokyo's core CPI, excluding fresh food, rose 2.4% in March year-on-year, surpassing the market forecast of a 2.2% increase.

•  The case for a Bank of Japan rate hike is strengthening due to stronger Tokyo inflation and a hawkish tone in the bank's March meeting summary.

•  Immediate resistance is located at 151.23(Daily high), any close above will push the pair towards 151.53 (50%fib).

•  Support is seen at 149.98(38.2%fib) and break below could take the pair towards 149.09(Lower BB ).

Recommendation: Good to sell around 150.20, with stop loss of 150.80 and target price of 149.50
 

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