FxWirePro: USD/JPY Daily Outlook

USD/JPY chart - Trading View 

USD/JPY Technical Analysis:
- Fails to hold break above 200-DMA
- RSI has turned and Stochs are at overbought levels
- Spinning top formation seen at highs
- Bearish divergence on RSI and Stochs on intraday charts

Data Released:
- US factory orders contracted at -0.5%, slightly better than forecasts at -0.6%, bringing up the recessionary fears once again.

Data Watch:
- On Wednesday CPI data is due and also the Fed will publish the minutes of its latest meeting. 
- Fed minutes will likely reinforce the current “patient” stance of the central bank.

Event Watch:
- Brewing U.S.- EU trade tensions as the U.S. looks to impose tariffs on EU products (US proposes tariffs on $11bn of EU products over Airbus subsidies)
- In Brexit news, May will meet with Merkel and Macron in Berlin and Paris today hoping to drum up support ahead of the EU Summit on Wednesday.

Support levels - 111.14 (21-EMA), 111.02 (110-EMA), 110.75 (cloud top)
Resistance levels - 111.82 (Apr 5 high), 112, 112.21 (76.4% Fib)

Currency Forecasts: Scope for dip till 111, break below 110-EMA to see further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.