FxWirePro: USD/JPY dips as tariff fears drive demand for Yen

• USD/JPY dipped on Monday as safe-haven Japanese yen rallied as uncertainty around tariffs clouded the outlook for U.S. inflation and economic growth

• Markets are nervous ahead of a new round of reciprocal levies that the White House is due to announce on Wednesday.

• Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3.

• On the data front, Japan’s factory output exceeded expectations, but slowing retail sales and a production downturn hint at growing economic challenges..

•  Industrial production increased 2.5% in February, following a 1.1% decline in January, surpassing the market forecast of a 2.3% rise, according to METI data released on Monday.
 
•  Immediate resistance is located at 150.05 (50%fib), any close above will push the pair towards 151.00(Psychological level).

• Support is seen at 148.54 (38.2%fib) and break below could take the pair towards 147.14(13th March low ).

Recommendation: Good to sell around 149.30, with stop loss of 150.00 and target price of 148.60