FxWirePro: USD/JPY struggles at 200-DMA, watch out for break above 112.90 for further upside

• Data released early today showed Japan Nikkei Manufacturing PMI registered at 52.6, below expectations (53.4) in September.
   
• USD/JPY edged higher, recovering from the risk-off sell-off seen last week, hit session highs at 112.52.
   
• Upside however, capped shy of major trendline resistance at 112.90, we see upside only on breakout above.
   
• The pair has formed an inverted hammer and finds immediate support at 5-DMA (112.09).
   
• Break below 5-DMA finds next major support at daily cloud at 111.60, we see major weakness on break below.
   
• The pair has completed a 'Bearish Cypher' pattern which adds scope for downside. Break below 111.60 is likely to see test of 50-DMA at 110.34.

Support levels - 112.09 (5-DMA), 111.60 (cloud top), 111, 110.34 (50-DMA)

Resistance levels - 112.90 (trendline), 112.95 (78.6% Fib retracement of 114.495 to 107.318 fall), 113, 114.36 (double top)

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