FxWirePro: USD/JPY rangebound ahead of FOMC minutes, breakout at 55-EMA to propel the pair higher

USD/JPY chart - Trading View 

USD/JPY trades in narrow range as markets await Powell's testimony and FOMC minutes.

The major extended marginal gains and paused shy of 109 handle amid improved risk tones and a broadly firmer US dollar.

Markets are now pricing less easing for the July meeting after strong growth in Nonfarm Payrolls in June.

Focus now on Powell's semi-annual testimony and the FOMC minutes that follow for further impetus. 

Trade war tensions between the US and China, alongside Japan and Korea will keep market cautious and upside limited.

Near-term technical bias remains bullish. RSI above 50 and momentum with the bulls. A bullish divergence on RSI and Stochs adds to the upside bias.

The major finds stiff resistance at 108.99 (nearly converged 50-DMA and 55-EMA). Break above to see further upside. 

Next major resistance lies at 110-EMA at 109.71 ahead of 61.8% Fib at 110.13.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-USD-JPY-consolidates-above-21-EMA-uptick-in-UST-yields-supports-dollar-1557750) has almost hit TP2.

Recommendation: Watch out for break above 109 for further upside.

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