FxWirePro: USD/JPY consolidates above 21-EMA, uptick in UST yields supports dollar

USD/JPY chart - Trading View 

USD/JPY is trading largely unchanged at 108.36, edges lower from session highs at 108.58.

The major is consolidating break above 21-EMA after NFP-led upsurge on Friday's trade. 

An above-forecast US non-farm payrolls print last week lowered the odds of aggressive Fed rate cuts, supporting the USD.

NFP report showed the economy added 224,000 jobs in June, beating the expected number of 165,000 jobs by a big margin. 

The 10-year UST yield edged back above 2%, lifting the US Dollar. However, rising US-Iran tensions are likely to cap upside.

Technical studies support upside. RSI above 50 and Stochs are biased higher. Volatility is rising on the intraday charts.

Pullback from session highs is holding support at 1H 21 EMA. Break below will see minor weakness.

On the flipside, the pair is extending sideways along 4H 200-SMA support. Decisive break above will see further upside.

Support levels - 108.17 (21-EMA), 107.87 (23.6% Fib), 107.53 (July 3 low)

Resistance levels - 108.74 (38.2% Fib), 109, 109.44 (50% Fib)

Recommendation: Good go long on breakout above 4H 200 SMA (108.42), SL: 108, TP: 108.75/ 109/ 109.40

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.