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FxWirePro: USD/JPY range to extend until there is game changing news

• USD/JPY edged up on Friday as U.S. dollar recovered following Thursday’s sharp drop on weak jobless claims data.

• U.S. consumer prices climbed 0.4% in August, marking the sharpest monthly increase in seven months, while separate data showed producer prices unexpectedly declined during the same period.

• Weekly jobless claims jumped last week, highlighting further weakness in the labor market, after Friday’s employment report showed job growth nearly stalled in August.

• The Fed is expected to cut rates by 25 bps on Wednesday, with only a small chance of a 50 bps move, CME FedWatch shows.

• Immediate resistance is located at 148.55(38.2%fib), any close above will push the pair towards 148.75 (Higher BB).

•  Support is seen at 146.86(50%fib) and break below could take the pair towards  146.50 (Lower BB ).

Recommendation: Good to buy around 147.40 with stop loss of 147.00 and target price of 148.50
 

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