FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY is extending sideways grind, trades 0.07% higher on the day at 144.74 at around 11:15 GMT.

Risk-off flows returned amid tensions between Europe and Russia, keeping the dollar supported.

US Automatic Data Processing (ADP) Employment data released on Wednesday showed that the economy has added 208k jobs in September.

Market focus is now on the US Nonfarm Payrolls (NFP) data, due Friday. The consensus for the payroll data is indicating a decline to 250k vs. the prior release of 315k. 

Further, hawkish comments by Fed officials reaffirmed expectations that the US central bank will tighten its monetary policy at a faster pace and continues to act as a tailwind for the USD.

Traders will also take cues from the broader market risk sentiment, which might influence price action in the pair.

Widening the US-Japan rate differential and monetary policy divergence adds to the upside potential. 

Technical bias for the pair is also bullish. GMMA indicator shows major and minor trend are biased higher.

Major Support Levels: 

S1: 144.53 (200H MA)

S2: 143.35 (21-EMA)

Major Resistance Levels: 

R1: 145.42 (Upper BB)

R2: 146

Summary: USD/JPY trades with a bullish bias. Technical studies point to some meaningful upside in the USD/JPY pair.