FxWirePro: USD/JPY rangebound in the Asian session, focus on Non-Farm Payrolls data for impetus

USD/JPY chart - Trading View 

USD/JPY was trading largely muted in the Asian session, at 106.18 at around 03:50 GMT.

The pair comatose above 21-EMA, capped below the daily cloud and intraday bias as evidenced by the technical indicators is neutral.

Data from the US overnight showed that the business activity in the service sector expanded at a strong pace in August. 

US non-manufacturing ISM printed at 56.9 in August, close to expectations at 57.0 and compared to prior 58.1. New orders stood at 56.8 from 67.7 prior and activity was at 62.4 from 67.2 prior, slipping from their strong July levels.  

Further, the July trade deficit widened to  -63.60B, the highest in 12 years. Details showed imports surged 10.9% M0M while exports rose 8.1% MoM.

Also, weekly Initial Jobless Claims declined by 130,000 to 881,000 in the week ending August 29th. 

Mixed data failed to boost sentiment. Safe-haven Japanese yen remains bid with a negative shift in market sentiment, as reflected by the heavy selloff in major equity indexes. 

As USD/JPY trades comatose between 21-EMA and daily cloud, US August Non-Farm Payrolls report awaited for impetus. 

"As of July, non-farm payrolls were still almost 13 million below the February peak. Unemployment will remain elevated for some time; Westpac and the market forecast 10.0% and 9.8% in August (prior: 10.2%). And downward pressure will remain on average hourly earnings (prior: 0.2%, market f/c: 0.0%).", note analysts at Westpac.

Support levels - 106.08 (21-EMA), 105.96 (23.6% Fib), 105.30 (Lower BB)

Resistance levels - 106.42 (55-EMA), 106.93 (110-EMA), 107