FxWirePro: USD/JPY off lows, regains 109 handle, yen weakens after the state of emergency declaration

USD/JPY chart - Trading View 

USD/JPY has bounced off session lows at 108.67 and was trading at 109.10 at 10:40 GMT.

The pair's near-term outlook has turned bullish after breakout at 200+DMA resistance on Monday's trade.

On the economic front, Japan's preliminary estimate of the February Leading Economic Index, came in at 92.1, beating the market’s forecast. 

The Coincident Index for the February month was also better than anticipated, rising to 95.8.

Improving COVID-19 situation in some of the worst-hit countries dampens demand for the safe-haven yen.

Major trend in the pair is neutral, but minor trend is showing signs of bullishness as evidenced by the GMMA indicator.

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

21-EMA is immediate support at 108.50. Retrace below 200-DMA negates any bullish bias.

Major Support Levels: 108.50 (21-EMA), 108.33 (converged 5 and 200 DMA), 107.69 (38.2% Fib)

Major Resistance Levels: 109.22 (23.6% Fib), 109.79 (Daily cloud), 110.29 (Jan 17 high)