• The USD/JPY uptrend gained momentum on Friday as the U.S. dollar strengthened ahead of next week's Federal Reserve meeting.
• Despite a better headline , some softening in U.S. producer price inflation on Thursday reinforced market expectations of a 25 basis point drop from the Fed next week.
• According to CME's FedWatch tool, traders see easing at the next meeting as possibility, but they also place 23% odds on another one coming in January..
• At GMT 06:38, the pair was trading up 0.41% at 152.96, highest level since November 27th high.
• Technical signals are bullish as RSI is at 55, daily momentum studies 5, 9 and 10 SMAs are trending up.
• Immediate resistance is located at 153.44(23.6%fib), any close above will push the pair towards 154.44 (Nov 26th high).
• Support is seen at 152.33(50%fib) and break below could take the pair towards 151.53 (61.8%fib)
Recommendation: Good to buy around 152.70, with stop loss of 152.00 and target price of 154.00
