FxWirePro: USD/JPY trades in narrow range, finds stiff resistance at 1H 55-EMA at 106.42

• USD/JPY bears remain in control, the pair is trading in a narrow range as we enter the week.
   
• We saw an intraday high of 106.36 and a low of 106.06 in the Asian session today.
   
• The dollar found some traction on Monday following last week's steep fall and managed to hold above the 106 handle.
   
• Inflation worries and concerns about the U.S. fiscal and trade deficits will keep the dollar on the defensive.
   
• Technical indicators are still bearish, we do not see any major signs of reversal.
   
• 1H 55-EMA at 106.42 offers stiff resistance, break above could see minor upside till 1H 110-EMA at 106.94.
   
• We see minor bullishness in the near-term only on decisive break above 5-DMA at 106.70.
   
• Resumption of weakness will see test of major trendline support at 104.85.

Support levels - 106.21 (1H 21-EMA), 106, 105.55 (Feb 16 low)

Resistance levels - 106.41 (1H 55-EMA), 106.70 (5-DMA), 106.94 (1H 110-EMA)

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