FxWirePro: USD/JPY breaks above 200-DMA to test 109 handle, spike in COVID-19 cases in Japan weighs on the yen

USD/JPY chart - Trading View 

The Japanese yen remains on the back-foot amid a likely state of emergency in Japan as COVID-19 cases spike.

USD/JPY rises 0.53% on the day to briefly flirt with 109.00 handle, erases some gains to trade at around 108.85 at 04:05 GMT.

The Japanese government is set to announce a state of emergency on April 7, Tuesday, which will take effect on April 8, Wednesday.

The Japanese yen has been sold-off across the board amid expectations of a rescue package to be rolled out soon.

On the other side, risk-on fostered by reports of a slowdown in the number of coronavirus cases in some of the worst-hit countries like the US, Italy, and Spain keeps the greenback supported.

Major trend in the pair is neutral, but minor trend is showing some signs of bullishness. Close above 200-DMA will fuel further gains.

Next major resistance aligns at 109.79 (daily cloud), break above to see retest of March highs at 111.71. 

Major Support Levels: 108.31 (200-DMA), 107.95 (5-DMA)

Major Resistance Levels: 109.30 (Tenkan sen), 109.79 (Daily cloud)

Guidance: Stay long on close above 200-DMA, SL: 107.90, TP: 109.30/ 109.75