FxWirePro: USD/JPY trades sideways along 55-EMA resistance, 200-DMA breakout to accelerate gains

USD/JPY chart - Trading View 

USD/JPY was trading marginally higher on the day at 107.70, up 0.18% at around 05:45 GMT.

The latest FOMC minutes on Wednesday provided no clues. Minutes reiterated support for the current monetary policy while ruling out negative rates.

Risk reset supporting the dollar higher. However, US-China tussle and virus updates likely to keep a cap on gains.

April's monthly inflation data from Japan and the BoJ monetary policy meeting will be catalysts to watch. 

Also, preliminary readings of the U.S. May month PMIs and the weekly Jobless Claims will also be important to watch for impetus.

The pair is extending break above daily cloud and we see scope for further upside. Momentum studies have turned bullish.

Immediate resistance above 110-EMA lies at 200-DMA at 108.26. Break above 200-DMA to buoy prices higher.

21-EMA is strong support at 107.28, retrace below 21-EMA negates bullish bias.

Support levels - 107.28 (21-EMA), 107.03 (20-DMA), 106.70 (Cloud base)

Resistance levels - 108.08 (110-EMA), 108.26 (200-DMA), 108.85 (50% Fib)