• USD/JPY dipped on Monday as concerns over a trade war and growing recession fears in the U.S. continued to fuel demand for safe haven yen.
• Fears of a trade war escalated as China retaliated with countermeasures, including a 34% tariff on U.S. goods and export restrictions on some rare earths.
• Investors bet that the imminent recession risk would outweigh the potential inflation boost from tariffs.
• At GMT 05:42, the US dollar was last trading down 0.65% at 145.92 Japanese yen.
• Immediate resistance is located at 148.80 (April 7th high), any close above will push the pair towards 147.54(38.2%fib).
• Support is seen at 145.16 (38.2%fib) and break below could take the pair towards 143.29(Oct 24 2024 low).
Recommendation: Good to sell around 146.00, with stop loss of 146.60 and target price of 145.00
