USD/JPY chart - Trading View
USD/JPY was trading 0.21% higher on the day at 106.83 at around 03:32 GMT, extending previous session's gains.
The pair briefly tested 107 handle before paring some gains, bias is turning slightly bullish.
US yields are gaining ground and S&P 500 futures are up 0.4% early today despite poor U.S. jobs report.
The Nonfarm Payrolls data published on Friday showed the US economy lost a record 20.5 million jobs in April.
While US jobs data was dismal, it was somewhat better than estimates. Also, optimism generated by reports of the US-China trade talks keeps the pair supported.
Major trend is the pair still remains bearish. Minor trend has turned neutral. Scope for further upside and oscillators poised to rollover from oversold levels.
Price action has retraced into daily cloud and is just shy of 21-EMA resistance at 107.10. Other major hurdles align at 55-EMA at 107.77 and 110-EMA at 108.18.
Break above 110-EMA could change near-term dynamics. Failure at 21-EMA will negate further upside in the pair.
