• USD/JPY firmed on Tuesday as market awaited testimony from Federal Reserve Chair Jerome Powell later in the day and inflation data on Wednesday.
• The focus shifts to Wednesday’s US CPI report, with core inflation expected to dip, which would be welcomed by markets.
• A lower-than-expected CPI report could lead to the US dollar losing ground across the board, while a higher-than-expected reading might strengthen the greenback for the remainder of the week.
• At GMT 12:07, the pair was trading up 0.24 % at 152.26 .
• Immediate resistance is located at 152.48 (38.2%fib), any close above will push the pair towards 154.26(23.6%fib).
• Support is seen at 151.07(50%fib) and break below could take the pair towards 149.69 (61.8%fib)
Recommendation: Good to buy around 152.00, with stop loss of 151.20 and target price of 152.80
