FxWirePro: USD/JPY Trades Narrow Range, Capped Below Strong Trendline Resistance at 109.90

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). 
  

Recommendation: Short breaks below 109.25, SL: 109.65, TP: 108.90/108.75/108.60 

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