FxWirePro: USD/JPY retraces from session highs, US dollar on the backfoot ahead of PCE data

USD/JPY chart - Trading View 

• USD/JPY was trading largely unchanged at around 110.85 at around 03:55 GMT, outlook bullish.
   
• DXY capped at 91.85 mark and trades with 0.05% losses in the Asian session. Mixed US economic data overnight added to the downbeat sentiment surrounding the US dollar.
   
• The Weekly Initial Jobless Claims fell to 411K. The reading is well above 200K levels before the coronavirus pandemic.
   
• The US Goods Trade Deficit widened to $88.1 billion in May, from $85.7 billion in April. While, US Gross Domestic Growth (GDP) remained unchanged at 6.4%.
   
• Markets cheer US President Joe Biden’s ability to deliver promised stimulus but lack of details dim optimism.
   
• Investors await the US Personal Consumption Expenditure (PCE) Index and Fedspeak to gauge the market sentiment for fresh impulse.

Summary:

Technical bias for the pair remains bullish. That said, overbought conditions warrant some caution. Pullbacks, if any, are likely to be shallow.

Major trendline resistance lies at 110.75, watch out for decisive break above for upside continuation. Next major bull target lies at 76.4% Fib at 111.39.