USD/JPY chart - Trading View
USD/JPY trades in an extremely narrow range, markets cautious ahead of the crucial NFP report due Friday.
Poor economic data and escalating geo-political tensions to keep pressure on the Greenback.
US trade deficit reached a record high in May. The ISM non-manufacturing activity index fell to 55.1 in June, it's lowest reading since July 2017.
Employment data was mixed. Initial jobless claims fell, while the ADP employment change missed the mark and expectations of 140,000, with 102,000 workers hired.
Focus will now be set on Non-farm Payrolls and the implications for the FOMC this month.
Technical indicators do not post a very bright picture either. Major trend is bearish. Price action failed to hold break above 21-EMA.
Stochs and RSI have turned and the pair has slipped below 5-DMA. Scope for weakness.
Break below 61.8% Fib (107.61) eyes lower Bollinger Band at 107.08 ahead of 78.6% Fib at 106.31.
Decisive break above 21-EMA could see some upside. Bearish invalidation only above 200-DMA.
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