FxWirePro: USD/JPY struggles to extend gains amid broad-based U.S. dollar weakness, outlook bearish

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% higher on the day at 103.93 at around 06:00 GMT, outlook remains bearish.

The pair remains capped below the 104 handle and broad-based U.S. dollar weakness likely to keep gains limited.

Strong PMI data released on Thursday might discourage the Fed from providing further accommodation at the FOMC meeting later this month. 

Markit final services PMI reading for November was revised higher to 58.4 from the preliminary estimate of 57.7, the highest reading in over five years. 

The ISM services PMI for November came in at a solid 55.9, only very marginally below expectations for 56.0. Notably, the employment sub-index remained above the 50 mark, implying that service sector employment was in expansion.

Despite good data, the safe-haven dollar seems to have taken a beating overnight amid rising expectations for swift global economic recovery on early vaccine and renewed fiscal stimulus hopes.

Technical bias for the major is bearish. GMMA indicator shows major and minor trend are strongly bearish. 

Recovery was rejected at 21-EMA and the pair is on track to test trendline support at 103.40. Breach below will plummet prices further. Next major support lies at 103.17 (Nov 6 low).