FxWirePro: USD/JPY slips further below 5-DMA, dollar under pressure ahead of key NFP data

USD/JPY chart - Trading View 

USD/JPY slips for the 3rd straight session, trades 0.07% lower at 105.52 at around 04:15 GMT.

The greenback under pressure on continued optimism on the stimulus bill. U.S. House Speaker Nancy Pelosi said she was confident administration could reach an agreement on another coronavirus aid plan.

On the data front, ADP National Employment Report on Wednesday showed private payrolls increased by 167,000 jobs last month. 

The U.S. trade deficit narrowed to USD 50.7 billion in June from May’s USD 54.8 billion, as imports dropped more than exports. 

Details of the report showed exports rose 9.4 percent, as compared with May’s decline of 4.3 percent. On the other hand, imports grew 4.7 percent, as compared with May’s fall of 0.7 percent. 

U.S. service sector’s business activity saw some stabilization. The seasonally adjusted final IHS Markit US services PMI index came in at 50 in July, rising from June’s 47.9.

The pair trades in 'Slopping Channel' pattern. Price action slips below 5-DMA. Momentum is bearish.

200H MA is strong support. Break below will see dip till channel base at 103.65. Retrace above 21-EMA could change near-term bias.