FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY was trading 0.43% higher on the day at 132.95 at around 10:20 GMT, hovers around 21-EMA. 

The dollar wobbly on Tuesday after a slump in U.S. manufacturing activity last month pointed to further signs of a slowing economy.

The Institute for Supply Management (ISM) survey showed on Monday that manufacturing activity fell to the lowest level in nearly three years in March as new orders continued to contract.

The Institute for Supply Management (ISM) said its manufacturing PMI fell to 46.3 last month, the lowest since May 2020, from 47.7 in the previous month.

All subcomponents of the manufacturing PMI were below the 50 threshold for the first time since 2009.

Further, U.S. construction spending also weakened, down 0.1% in February after increasing 0.4% in the previous month.

Focus this week will be on Friday's U.S. jobs report, although many markets will be closed for the Easter holiday.

Major Support Levels: 

S1: 131.98 (55-week EMA)

S2: 131.84 (200H MA)

Major Resistance Levels: 

R1: 133.34 (55-EMA)

R2: 134.34 (110-EMA)

Summary: USD/JPY has bounced off major trendline support and is showing signs of further upside. Price action is grinding sideways at 21-EMA, decisive break above will take the pair higher.