FxWirePro: USD/ JPY downtrend loses momentum but bearish setup remains

• USD/JPY rose early on but lost momentum after President Trump backed down from his threats to dismiss Fed Chair Jerome Powell, calming investor nerves.

• Investor concerns grew this week over the Fed’s independence after President Trump repeatedly criticized Chair Jerome Powell for not cutting interest rates since his return to office.

• President Trump and Treasury Secretary Scott Bessent indicated that U.S.-China trade tensions may ease, suggesting a potential deal could "substantially" reduce tariffs..

•  On the data front, Japan’s manufacturing sector continued to struggle in April, marking its tenth consecutive month of contraction, with business confidence among manufacturers plunging to nearly five-year lows. 

• The au Jibun Bank Japan flash manufacturing PMI rose slightly to 48.5 in April from 48.4 in March, signaling continued contraction in the sector for the tenth straight month.
 
•  Immediate resistance is located at 142.86 (38.2%fib), any close above will push the pair towards 143.62 (April 15th high).

•  Support is seen at 141.52 (Daily low) and break below could take the pair towards 140.00(Psychological level ).

Recommendation: Good to sell around 141.90, with stop loss of 142.60 and target price of 141.00