USD/JPY chart - Trading View
USD/JPY was trading 0.06% lower on the day at 108.66 at around 05:00 GMT, after closing largely unchanged in the previous session.
Data released earlier on Monday showed Japan’s trade numbers flash strong signals for March and Industrial Production also improved from the initial estimations for February.
The pair is resuming weakness after Doji formation on the previous session's candle, outlook is bearish.
A close below major support at 200W MA on the previous week's trade has raised scope for further weakness.
Price action is below 200H MA and momentum studies are bearish. Stochs and RSI are sharply bearish.
The US dollar finished last week with a set of firm data. Hopes of further stimulus and faster vaccinations favor the market sentiment.
However, geopolitical risks are rising once again and could act as a threat to markets in the day and weeks ahead.
Volatility is high and combined with bearish momentum is likely to drag prices lower. Next major support lies at 55-EMA at 107.96 ahead of 38.2% Fib at 107.76.
On the flipside, 5-DMA is immediate resistance at 108.82. Retrace above 200W MA will negate any further weakness.
