FxWirePro: USD/JPY upside pauses shy of 110 handle, finds stiff resistance at 200-DMA (110.17)

• USD/JPY upside pauses shy of 110 handle, the pair has slipped lower from session highs at 109.99.
   
• Focus on FOMC meeting this week where the divergence between the BoJ and Fed remains the key driver.
   
• Data released earlier today showed Japan household spending fell by 1.3% y/y, missing forecasts for 0.8% rise, and followed March’s 0.1% fall.
   
• Spending fell by 1.6% m/m, also missing expectation for 0.7% rise, following March’s 0.1% decline.
   
• Technically, the pair is trading with a bullish bias on the intraday charts. Bulls likely to target 200-DMA at 110.17.
   
• The major finds strong support at 21-EMA at 109.49. Retrace below could see weakness.
   
• Breakout a 200-DMA required for further upside. Scope then for test of 111.20 (major trendline).
   
• Economic data scheduled for release through the day includes April’s JOLTs job openings and May’s service sector PMI numbers by the ISM and Markiteconomics.
   
• ISM PMI numbers will be the key driver, with forecasts being Dollar positive, as the U.S economy gains momentum through the 2nd quarter.

Support levels - 109.49 (21-EMA), 109.37 (5-DMA), 109, 108.62 (50-DMA)

Resistance levels - 110, 110.17 (200-DMA), 110.87 (61.8% Fib), 111

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-holds-above-21-EMA-at-10943-scope-for-test-of-200-DMA-at-11017-1346524) has almost hit TP1.

Recommendation: Book partial profits at highs. 

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