USD/JPY chart - Trading View
USD/JPY was trading unchanged at 107.216 at around 04:45 GMT, slipping lower from session highs at 107.43.
The pair has bounced off 200H MA and cloud support, talks of additional U.S. stimulus could further bullish momentum.
The greenback attempted a tepid recovery in today's trade on reports that the White House would likely support a new round of stimulus checks.
Markets ignored downbeat US Jobless Claims, (2,981K versus 2,500K forecast), however, weaker market sentiment benefited the safe-haven JPY and capped upside in the pair.
The global risk sentiment was weighed down by fears about the second wave of coronavirus infections and escalating U.S.-China trade tensions.
Major trend in the pair is bearish, but minor trend on the intraday charts is turning slightly bullish.
The pair has held support at daily cloud base and has bounced off 200H MA support. Stochs are biased higher and 'Bullish Divergence' raises scope for upside.
U.S. data due later in the NY session along with trade/virus updates as well as political headlines will be in focus for immediate direction.
Major Support Levels:
- S1: 107.23 (cloud base)
- S2: 106.82 (200H MA)
- S3: 106.10 (Lower BB)
Major Resistance Levels:
- R1: 107.71 (55-EMA)
- R2: 108.17 (38.2% Fib)
- R3: 108.23 (200 DMA)
Guidance: Cloud offers strong support, watch for breakout above daily cloud for further gains.
