FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY extends gains for the 4th straight session, outlook is bullish. Dollar index holds mild gains amid mixed sentiment and firmer Treasury yields.

On the data front, US Good Trade Balance for November improved to $-83.3B versus $98.8B prior.

The US S&P/Case-Shiller Home Price Indices for October dropped to 8.6% YoY versus 9.7% expected and 10.4% previous readings.

Despite China announcing multiple measures to open national and international boundaries, US may impose new COVID-19 measures on travelers from China over concerns about the "lack of transparent data".

Technical indicators are turning bullish. Price action has edged above 200H MA. MACD shows bullish crossover on signal line.

Focus now on the US Pending Home Sales for November which holds the market consensus of 0.6% versus -4.6% previous readings.

Major Support Levels: 

S1: 133.70 (200H MA)

S2: 133.08 (5-DMA)

Major Resistance Levels: 

R1: 135.48 (21-EMA)

R2: 136.10 (200-DMA)

Summary: USD/JPY was trading with a bullish bias. Bulls eye test of 21-EMA at 135.48. Bullish continuation only above 200-DMA.