FxWirePro: USD/JPY erases early losses, Yen dented after BoJ minutes

Chart - Courtesy Trading View 

USD/JPY was trading 0.07% higher on the day at 121.23 at around 05:20 GMT.

The pair has edged higher from session lows at 120.95 after BoJ minutes dented the yen.

The Minutes of the latest BOJ meeting showed policymakers' readiness to ease policy if needed.

Preliminary readings of the US PMIs and Durable Goods Orders and US President Joe Biden’s meeting with European counterparts from NATO will be in focus for impetus.

US Markit Manufacturing PMI is expected to weaken to 56.3 from 57.3 previous readouts while the Services PMI is likely to have dropped to 56.0 from 56.5. 

Further, the US Durable Goods Orders growth for February is likely to print negative at -0.5% versus 1.6% prior.

Major Support Levels: 

S1: 121

S2: 120.35 (5-DMA)

S3: 119.18 (200H MA)

Major Resistance Levels: 

R1: 121.67 (Upper BB)

R2: 122

R3: 123.75 (Nov 2015 high)

Summary: USD/JPY trades with a bullish technical bias. Oscillators are at overbought, but no signs of reversal seen. Scope for test of 122 levels.