FxWirePro: USD/JPY slightly softer following US inflation data

 • USD/JPY edged lower on Wednesday as the dollar softened in the wake of U.S. inflation data that reinforced expectations for a Federal Reserve rate cut next month.

•  U.S. Labor Department data showed the consumer price index rose 2.7% in the 12 months through July, slightly below the 2.8% rate that economists   had forecast.

• Investors are now awaiting more U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.

• Meanwhile, Japan’s producer price index rose slightly above expectations in July but marked its slowest growth in 11 months, as domestic producers faced pressure from higher overseas tariffs.

• Japan’s PPI rose 2.6% y/y in July, topping forecasts of 2.5% but easing from June’s 2.9% gain, government data showed on Wednesday.

• 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 147.70, with stop loss of 147.30 and target price of 148.50