FxWirePro: USD/JPY struggles at daily cloud, bid tone intact amid improved risk sentiment

USD/JPY chart - Trading View 

USD/JPY extends marginal gains on the day amid improved risk sentiment as markets cheer the recent shift in the US outlook towards China’s Huawei. 

US Commerce Department announced a 90-day window to those doing business with China’s Huawei to mitigate hardships for domestic business.

Fed's Powell did not divulge much on the future monetary policy nor for trade tension, while Japanese FM Taro Aso praised Japan’s fundamentals while conveying worries for capital expenditure at home and China’s slowdown.

On the data front, focus on US existing home sales for immediate direction. The housing market gauge is expected to grow to 5.33 million from 5.21 million (MoM) in April.

The pair is extending recovery from 4-month lows at 109.01, intraday bias is bullish.

Price action has ignored doji formation on Monday's candle and is holding gains.

Cloud offers stiff resistance, break above to see further upside. Gains till 111 handle likely.

Bullish continuation above 200-DMA (111.43). 5-DMA is immediate support at 109.94, weakness likely on break below.

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