USD/JPY bulls make a move into the close to take on hourly resistance

• USD/JPY bulls moving back in and take on hourly resistance
• US dollar is on fire as markets turn risk-off on global growth risks. 

USD/JPY is taking on bears on the hourly time frame, breaking into key resistance. At 128.12, the price is down a touch for the day, by -0.28% after travelling between a low of 127.52 and 128.13 the high. The greenback has been the favour at the start of the week hitting a two-year high due to a wave of risk aversion that has swept global markets.

Growing worries of an economic slowdown in China and the contagion in global trade coupled with the Ukraine crisis is hammering risk apatite at the start of the week.  The greenback, against a basket of its rivals (DXY), has reached a high of 101.856 and was on track for its biggest daily rise since March 11.

There is an additional focus on the Federal reserve during the blackout week before the interest rate decision in May, The Hawkish comments by various policymakers raised the risks of aggressive policy tightening. The money markets are now expecting the Fed to raise interest rates by a half-point at the next two meetings.

Meanwhile, analysts are looking to the US Real Gross Domestic Product this week which has likely slowed sharply in the first quarter following a significant increase to 6.9% AR in Q4 from 2.3% in Q3.

''As was the case last quarter, inventories will play a large role though they will be a drag instead. That said, domestic final sales likely continued to strengthen on the back of firming consumer spending. The inflation parts of the report will likely show acceleration,'' analysts at TD Securities said.