FxWirePro: USD/JPY edges higher from session lows, hovers above 128 handle

Chart - Courtesy Trading View 

USD/JPY was trading largely unchanged at 128.11 at around 05:15 GMT, outlook is turning bearish.

The major has edged higher from session lows at 127.34 and was hovering around 128 handle.

The rate-sensitive safe-haven yen was the best performing G10 currency amid a sharp pullback in global bond yields.

Traders reassess global growth prospects amid the rising risk of a wider shutdowns in China.

Technical bias for the pair is turning slightly bearish. Price action has slipped below 5-DMA and 5-DMA has turned south.

The Bank of Japan will be in focus this week, as the central bank is set to announce its April policy decision on Thursday.

Markets aren’t expecting a change to the benchmark rate, but an update to the bank’s inflation targets is expected.

Major Support Levels: 

S1: 127.53 (200H MA)

S2: 125.48 (21-EMA)

Major Resistance Levels: 

R1: 128.11 (5-DMA)

R2: 129

Summary: USD/JPY trading with a slight bearish bias. The pair is holding support at 200H MA, break below will drag the pair lower. Dip till 21-EMA then likely.