FxWirePro: USD/JPY holds above 21-EMA support, struggles for direction ahead of US NFP data

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.15% higher on the day at 148.12 at around 08:30 GMT.

Previous Week's High/ Low: 149.71/ 145.10

Previous Session's High/ Low: 148.38/ 145.66

Fundamental Overview:

USD/JPY struggles to find direction as price action fails to extend Fed-inspired gains. Price action is extending sideways at 21-EMA support.

Escalating geopolitical tensions between North Korea and Japan join the risk-negative covid news from China keep downside limited.

US 10-year bond coupons ease to 4.096% while its two-year counterpart snaps a four-day uptrend as it drops to 4.611%. 

Traders focus on the US ISM Services PMI, forecasted to ease to 55.5 in October compared to 56.7 previous readings. Friday’s US Nonfarm Payrolls (NFP) will also be critical, after a strong ADP report. 

Technical Analysis:

- USD/JPY comatose around 21-EMA support

- Price action has edged above 200H MA

- GMMA indicator shows major trend is bullish, while minor trend is neutral

- The pair is trading above cloud and Chikou span is biased higher

Major Support and Resistance Levels:

Support - 147.23 (21-EMA), Resistance - 150.47 (Upper BB)

Summary: USD/JPY struggles for direction ahead of US NFP data. Bias remains bullish as long as pair holds above 21-EMA support. Breach below could change near-term dynamics.