USD/JPY chart - Trading View
Spot Analysis:
USD/JPY was trading muted at around 109.09 at 08:00 GMT
Previous Session's High/ Low: 109.17/ 108.72
Previous Week's High/ Low: 109.50/ 108.57
Fundamental Overview:
US dollar finds some bids ahead of GDP and jobless claims data. The second release is expected to show that the economy grew by 6.4% in the first quarter. While the latest initial jobless claims numbers that are expected to show another weekly decline.
Positive comments overnight from Fed Vice Chair Randal Quarles that the FOMC could begin discussing the plans to adjust the pace of asset purchases if the economic data come in stronger than expected keeps the dollar supported.
Some caution likely ahead of key US economic data on Thursday and Friday. Further, modest downtick in the US Treasury bond yields held the USD bulls from placing aggressive bets.
Technical Analysis:
USD/JPY trades with a bullish bias. Pullbacks have bounced off 55-EMA support.
The pair is on verge of breakout above daily cloud, which could fuel further gains.
RSI is flat, but holds above 50 mark. Stochs are turning bullish. Price action has retraced above 200H MA.
Price action is holding above 200-week moving average support, weakness only on break below.
Major Support and Resistance Levels:
Support - 108.95 (200H MA), 108.86 (200-week MA), 108.55 (55-EMA)
Resistance - 109.61 (Upper BB), 109.78 (May 13th high), 110
Summary: USD/JPY is struggling to capitalize on the previous day's positive move. Technical indicators are turning bullish on the intraday charts. Breakout above daily cloud will fuel further upside in the pair.


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