USD/JPY chart - Trading View
USD/JPY extends previous session's bounce, was trading largely muted at 104.36 at around 06:25 GMT.
Powell and Mnuchin flash mixed signals overnight. Fed Chair Powell strikes downbeat comments, while US Treasury Secretary Mnuchin pushes for stimulus.
Concerns about US economic strength, stimulus weigh on the greenback. Upside in the pair looks limited.
Downside bias remains intact. The major finds stiff resistance at 21-EMA, decisive break above will be required for further upside.
Focus on US Manufacturing PMIs and Fed Chair Powell’s testimony for further impetus. ISM Manufacturing PMI is forecast to slip to 57.9 in November from its 25-month high of 59.3 in October.
Upbeat numbers could put a bid under the greenback. Breakout at 21-EMA will see gains till 55-EMA at 104.86.
Cloud is major hurdle at 105.52. Breakout above could will change near-term dynamics.
