FxWirePro: USD/JPY Trades Narrow Range, Capped Below Strong Trendline Resistance at 109.90
- US data overnight was mixed, with jobless claims dropping below 250k (one would have to go back to 1973 to find a lower print), but the Philadelphia Fed was back in negative territory.
- USD broadly weaker in Asia today and with no significant local data or events scheduled, markets likely to track sentiment.
- Data released earlier today showed Japan's Manufacturing conditions in Japan worsened at sharpest pace in over three years in April.
- Flash Japan Manufacturing PMI came in at 48.0 compared to 49.1 in March, signals quickest deterioration in manufacturing conditions since January 2013.
- USD/JPY is trading in a tight range in Asian session after being rejeted at strong trendline resistance at 109.90 on Thursday.
- The pair has broken minor support at 109.40 on the 4H charts but downside sees strong support by 4H cloud top at 109.25. Weakness only on break below.
- Immediate support and resistance are seen at 109.25 (4H cloud top) and 109.55 (trendline).