USD/JPY chart - Trading View
USD/JPY was trading 0.26% higher on the day at 109.57 at around 04:40 GMT, outlook is bullish.
The pair closed the previous week with an impressive 1.32% gains as month-end flows probably supported the pair.
Upside was seen despite mixed data from the U.S. and largely steady US Treasury yields.
US dollar continues with a positive momentum across the board and a weekly close above 200 week SMA reinforces upside bias.
On the data front, US ISM Manufacturing PMI for April will be in focus for an indicator for overall economic health.
The US manufacturing sector looks to continue its uptick as the US economy powers out of the pandemic.
The Purchasing Managers’s Index (PMI) from the Institute for Supply Management is forecast to rise to 65 in April from its 38-year high of 64.7 in March.
Major Support Levels:
S1: 109.01 (5-DMA)
S2: 108.90 (200W MA)
S3: 108.81 (21-EMA)
Major Resistance Levels:
R1: 110.07 (Upper BB)
R2: 110.67 (88.6% Fib)
R3: 110.96 (Yearly high)
Summary: Technical indicators have turned bullish. Any disappointment in U.S. data later today could drag the pair lower. Covid headlines could also impact price action. Scope for test of 88.6% Fib at 110.67.
