• USD/JPY edged higher on Wednesday as traders awaited news on the U.S.–Israeli war with Iran, while mixed messages kept markets cautious.
• Markets expect Trump to end the Iran conflict soon, but his threats over blocked Strait of Hormuz energy flows keep sentiment mixed.
• The fast-evolving developments in the Middle East have left traders grappling with how to best price the risk, and for now they appear to be on the sidelines.
• On the data front, investors will focus on U.S. February inflation data Wednesday, with core prices expected up 0.2% and headline prices up 0.3%.
• Immediate resistance is located at 158.91(March 9th high), any close above will push the pair towards 159.90(23.6%fib).
• Support is seen at 157.13 (38.2%fib) and break below could take the pair towards 155.96(SMA 20 ).
Recommendation: Good to buy around 158.00, with stop loss of 157.30 and target price of 158.80
