Chart - Courtesy Trading View
USD/JPY was trading 0.41% higher on the day at 128.02 at around 04:40 GMT, slightly below session highs at 128.34.
The pair is extending gains for the third consecutive session as price bounces off 50-DMA support.
China’s official activity numbers marked contraction for May as the headline NBS Manufacturing PMI matched 49.6 forecasts, versus 47.4 prior, while the Non-Manufacturing eased to 47.8, below 50.7 market consensus.
Additionally, Australia’s Building Permits for April shrank to -2.4% compared to 2.0% expected growth and -18.5% in previous readings.
Market optimism fades during early Tuesday as bond buyers take a breather, capping run-away gains in the pair.
Major Support Levels:
S1: 127.38 (5-DMA)
S2: 126.83 (50-DMA)
Major Resistance Levels:
R1: 128.59 (20-DMA)
R2: 129
Summary: USD/JPY has held support at 50-DMA and intraday bias has turned bullish. Scope for upside resumption. Watch out for decisive break above 21-EMA for further gains.
