FxWirePro: USD/JPY gains as yen weakens after Japan's factory activity contracts

• USD/JPY advanced on Monday   as Japanese yen weakened after Japan's Purchasing Managers Index data contracted for the first time in five months in March.

• Japan's factory activity shrank at the fastest pace in a year in March, weighed down by declining production and new orders, a private-sector survey showed on Monday.

• The AU Jibun Bank Japan Flash Manufacturing Purchasing Managers' Index (PMI) fell to 48.3 in March, the lowest in a year, from 49.0 in February.

• The index stayed below the 50.0 threshold that separates growth from contraction for a ninth straight month.

• At GMT 08.06,the dollar was up  0.28% at 149.68 against Japanese yen .
 
•  Immediate resistance is located at 149.82 (38.2%fib), any close above will push the pair towards 150.43(Higher BB).

•  Support is seen at 148.39(61.8%fib) and break below could take the pair towards 148.00(Psychological level ).

Recommendation: Good to buy around 149.70, with stop loss of 148.60 and target price of 150.30