FxWirePro: USD/JPY outlook weaker on renewed downside pressure

• USD/JPY dipped on Friday as softer dollar offset downbeat Japanese GDP data.

• The U.S. dollar extended declined on Friday after weak economic data reinforced expectations of further policy easing by the Federal Reserve.

• Japan's economy contracted for the first time in a year and at a sharper pace than expected in the March quarter, data showed on Friday.

• Japan’s economy contracted 0.7% on an annualized basis in the first quarter, much worse than the 0.2% decline projected by analysts.

• Market attention now turned to upcoming Tokyo-Washington talks, as Japan’s Finance Minister Katsunobu Kato expressed plans to discuss FX matters with U.S. Treasury Secretary Scott Bessent.

• Immediate resistance is located at 146.87 (May 15th high), any close above will push the pair towards 148.78(50%fib).

•  Support is seen at 144.84(38.2%fib) and break below could take the pair towards  144.08(21SMA).

 Recommendation: Good to sell around 145.60 with stop loss of 146.60  and target price of 144.00