FxWirePro: USD/JPY struggles at 112 handle, focus on U.S. Retail Sales and Initial Jobless Claims data for further direction

USD/JPY chart - Trading View 

• USD/JPY struggles at 112 handle. Pair capped below 112 from past few sessions. 
   
• The major trades 0.14% lower on the day at 111.90 at 0355 GMT, intraday bias slightly bearish.
   
• But, strong support seen at 111.87 - converged 2H 55 EMA and 1H 110-EMA. Further weakness only on break below.
   
• Data released earlier today showed Japan manufacturing contraction slowed in April but export slump deepened.
   
• The Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 49.5 in April from a final 49.2 in March.
   
• Technical indicators on the hourly charts have turned slightly bearish. Break below 111.87 will see dip till 111.62 (1H 200 SMA).
   
• Retrace below 200-DMA (currently at 111.53) will see test of daily cloud. Breach at cloud support negates bullish bias. 
   
• Breakout at 112 required for upside continuation. Next major resistance above 112 lies at 112.56 (Upper BB).
   
• Focus on U.S. Retail Sales and Initial Jobless Claims data due later today for further direction.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.