FxWirePro: USD/JPY struggles at 20-DMA (106.57), decisive break above required for further upside

• USD/JPY fails to hold gains above 20-DMA, slips lower from session highs at 107.29.
   
• The pair retreated from highs after US inflation data disappointed bulls.
   
• US headline CPI came in at a m/m increase of 0.2% in February as against 0.5% rise recorded in the previous month.
   
• Yen remains in demand on signs of risk aversion in the US equities. Further market expectations of an early taper from the BoJ continue to dwindle post BoJ minutes.
   
• US retail sales and PPI data will be closely eyed amid other minority reports.
   
• Technical indicators are neutral. Decisive break above 20-DMA could see further upside.
   
• Scope then for test of 107.48 (23.6% Fib retrace of 114.737 to 105.250 fall).
   
• On the downside, decisive break below 5-DMA at 106.49 could see test of 105.15 (major trendline support).

Support levels - 106.49 (5-DMA), 105.15 (trendline), 105

Resistance levels - 106.56 (20-DMA), 107, 107.48 (23.6% Fib)

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