FxWirePro: USD/JPY grinds higher, USD holds marginal gains ahead of ADP and PMI data

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% higher on the day at 109.39 at around 06:15 GMT, outlook bullish.

The pair erased early losses and edged higher, downside held support at 5-DMA at 109.19.

Mixed signals from US Treasury Secretary Yellen and Fed’s Kashkari regarding Fed rate hike expectations keep traders from pursuing aggressive bets. 

US Treasury Secretary Yellen’s rate hike remarks and lifted a safe-haven appeal of the buck, but Fed’s Kashkari poured cold water on rate hike expectations raised by Yellen. 

Cautious trades likely ahead of the crucial US data, not to forget holidays in Japan and China, would likely restrict momentum traders.

Major Support Levels: 

S1: 109.19 (5-DMA)

S2: 108.90 (200W MA)

S3: 108.87 (21-EMA)

Major Resistance Levels: 

R1: 109.84 (Upper BB)

R2: 110

R3: 110.84 (April high)

Summary: Technical bias for the pair is bullish. Pullback has bounced off cloud support and oscillators are biased higher. MACD shows bullish crossover on signal line. 

US ADP and PMI data in the day could impact the directional bets for the pair. Scope for test of 110 levels.