FxWirePro: USD/JPY extends tepid bounce in early Asia, focus on stimulus updates and ADP jobs data for impetus

USD/JPY chart - Trading View 

USD/JPY extends tepid bounce in early Asian trade after closing largely muted on Tuesday.

Risk-off returns in Asia after a record rally on Wall Street overnight amid revival of the US fiscal stimulus talks.

The Bipartisan Congress unveiled a $908 billion aid proposal late Tuesday. Markets now await further updates on stimulus for fresh impetus.

On the data front, US ISM Manufacturing PMI for November missed estimates with 57.5 while Fed Chair Jerome Powell reiterated his cautious stance on the economic recovery.

Markets paid little heed to BOJ Deputy Governor M. Amamiya's who said the BOJ will not hesitate to roll out additional easing measures if necessary.

Expectations that the US-China tensions will ease under the US President-elect Joe Biden's leadership will likely keep the dollar supported.

Major trend in the pair is bearish. On an intraday basis we see neutral bias for the pair. Recovery finds stiff resistance at 21-EMA. 

On the flipside, 5-DMA is immediate support at 104.24. Break below could see further weakness. Major support aligns at 101.65 (trendline).