FxWirePro: USD/JPY comatose below 200-DMA, US Services PMI in focus

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.34% lower on the day at 136.28 at around 08:20 GMT.

Previous Week's High/ Low: 136.51/ 133.91

Previous Session's High/ Low: 137.10/ 136.02

Fundamental Overview:

Dollar set for first weekly loss since January as traders tried to gauge the path for Federal Reserve policy.

DXY was trading 0.45% lower for the week at the time of writing, snaps 4-week bullish streak.  

Dovish comments from Atlanta Fed President Raphael Bostic overnight that "slow and steady is going to be the appropriate course of action," despite new labour figures adding to the run of strong data of late, keep bias lower.

Prospects for a steady economic recovery in China also keep sentiment buoyed and undermined demand for the dollar.

Markets await the release of US Services PMI data at 1445 GMT later in the NY session. Upbeat US Services PMI could fuel hawkish Fed bets.

US Services PMI is seen lower at 54.5 from the former release of 55.2. The New Orders Index which conveys the forward demand is expected to decline to 58.5 from the prior figure of 60.4.

Technical Analysis:

- GMMA indicator shows major and minor trend are neutral

- Momentum is bullish, Stochs and RSI are biased higher

- The pair is extending sideways below 200-DMA resistance

- MACD and ADX still support upside in the pair

Major Support and Resistance Levels:

Support - 134.99 (110-EMA), Resistance - 137.29 (200-DMA)

Summary: USD/JPY trades with a neutral bias. Technical indicators do not provide clear direction. Focus on US Services PMI for impetus.