FxWirePro: USD/JPY trends higher, but faces potential pitfalls

 • USD/JPY edged higher   on Wednesday but gains were limited as  investors assessed the interest rate outlook for the United States.

  • Investors are now looking forward to US September inflation data, as well as minutes from the Fed's recent meeting, which will be released later on Wednesday, to gain insight into the probable direction of interest rates.

• At GMT 16:06, the pair was trading up 0.22% at 148.51, rebounding from over night low at147.50. 

• Technical signals are  strongly bullish as RSI is   at 63, daily momentum studies  5, 9 and 10 DMAs are trending up.
 
• Immediate resistance is located at 149.37(23.6%fib), any close above will push the pair towards 150.00 (Psychological level).

•  Support is seen at 147.50 (38.2%fib) and break below could take the pair towards 145.93 (50%fib)

Recommendation: Good to buy  around 148.40, with stop loss of 147.80 and target price of 149.00