FxWirePro: USD/JPY dips as trade war concerns drive yen demand

• USD/JPY fell on Tuesday as trade war concerns, global recession fears, and contrasting BoJ-Fed policies boosted demand for the yen.

• On Monday, China accused Washington of abusing tariffs and warned countries against making deals with the U.S. at its expense, escalating the trade war. 

• The Bank of Japan is expected to signal next week that the risks posed by higher U.S. tariffs are unlikely to disrupt the ongoing cycle of rising wages and inflation—key factors supporting further interest rate hikes.

• At its two-day policy meeting ending May 1, the BOJ is expected to lower its economic growth forecasts and highlight escalating risks from Trump's tariffs, which are set to impact global demand.
 
•  Immediate resistance is located at 141.28 (Daily high), any close above will push the pair towards 142.40(50%fib).

•  Support is seen at 139.70(38.2%fib) and break below could take the pair towards  139.00(Psychological level).

Recommendation: Good to sell around 140.00, with stop loss of 141.00 and target price of 139.20