FxWirePro: USD/JPY extends recovery gains, clear break above 21-EMA will see bullish shift in near-term trend

USD/JPY chart - Trading View 

USD/JPY hits weekly high above 107 handle as the major extends previous session's recovery gains.

The major was trading 0.11% higher on the day after closing 0.49% higher in the previous session.

US-China tension and increasing virus numbers from the US which strengthen the fears of the wave 2.0 are likely to limit gains in the pair.

The US 10-year treasury yields and stock futures extend the previous day’s losses amid rising risk-off.

Technical indicators support weakness in the pair. Price action is below major moving averages and momentum studies are bearish.

That said, the pair has formed 'Double Bottom' at 106. Price action has edged above 5-DMA, 200H SMA and daily cloud.

21-EMA is stiff resistance at 107.32. Break above will change near-term trend to bullish. 

Major Intraday Support - 106.89 (5-DMA)

Major Intraday Resistance - 107.32 (21-EMA)