FxWirePro: USD/JPY rangebound around 5-DMA, focus on key US NFP report for impetus

Chart - Courtesy Trading View 

USD/JPY was trading rangebound on the day with session high at 116.05 and low at 115.79.

The pair remains rangebound as traders await the key US Non-Farm-Payrolls (NFP) report.

A stronger NFP print will reaffirm the positive outlook and set the stage for the resumption of upside in the USD/JPY.

Fed rate hike speculations have been heightened overnight after bullish comments by St. Louis Fed James Bullard and San Francisco Fed President Mary Daly.

Markets now price in an 80% chance of a 25 bps Fed hike in March 2022. Upbeat jobs data could reinforce the need for faster policy tightening.

Technical bias for the pair is bullish. Price action is above cloud and major moving averages. 

MACD and ADX support upside. GMMA shows major and minor trend are strongly bullish. Volatility is high and momentum is bullish.

Major Support Levels: 

S1: 115.85 (5-DMA)

S2: 114.86 (21-EMA)

Major Resistance Levels: 

R1: 116.66 (88.6% Fib)

R2: 117

Summary: USD/JPY traders await NFP report for impetus. Technical bias is strongly bullish. Pullbacks if any are likely to be shallow. Scope for test of 88.6% Fib.