- USD/JPY inches higher from session lows at 106.18 as yen weighed down by softer Japanese data.
- Data released earlier today showed that the Japanese Tankan Manufacturing Outlook and Index indicators missed expectations.
- The pair is trading with a mild bullish bias and bullish divergence on RSI and Stochs keeps scope for upside.
- We have seen last week that price action has broken strong trendline resistance at 106 levels.
- Further we evidence bullish divergence on RSI and Stochs which raises scope for upside.
- On the flipside 20-DMA at 106.09 is strong support, we see weakness only on break below.
Support levels - 106.22 (5-DMA), 106.09 (20-DMA), 105.70 (trendline)
Resistance levels - 107.01 (23.6% Fib), 107.29 (March 13 high), 107.77 (cloud base)
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