FxWirePro: USD/JPY fails at 55-EMA, dollar dented on dovish Powell's comments and FOMC minutes

USD/JPY chart - Trading View

USD/JPY extends weakness for the 2nd straight session after rejection at 55-EMA on Wednesday's trade.

The pair trades 0.24% lower on the day at 108.19 at 10:10 GMT, bias turning bearish. 

USD slumps on Powell's dovish remarks, and June FOMC meeting minutes which showed that many policymakers judged additional monetary stimulus would be needed soon.

Fed's aggressive rate cut hopes which were subdued after upbeat NFP data were once again revived, weighing on the dollar.

RSI has turned and Stochs are on verge of rollover from overbought levels. 

However, bullish divergence keeps scope for upside. The pair has held support at 4H 200 SMA.

Major trend has been bearish. Break below will see further downside. Scope for test of lower BB at 107.85.

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