FxWirePro: USD/JPY slips lower to test 5-DMA support, disappointing US jobs data and dovish Fed minutes weigh

USD/JPY chart - Trading View 

USD/JPY was trading 0.11% lower on the day at 104.31 at around 04:15 GMT, bias is turning bearish. US dollar remains under pressure after disappointing US jobs data and dovish Fed minutes overnight.

Weekly jobless claims showed that the resurgence of coronavirus is boosting layoffs and undermining the labor market recovery. Initial Jobless Claims for the week ended Nov 20 rose to 778K, more than 730K expected.

The prelim US GDP report showed that the economic growth in Q3 stood at 33.1% annualized pace, inline with advance estimates but slightly lower than market expectations of 33.2%.

Further, US Personal Income fell in October while spending ticked higher. Separately, the US Durable Goods Orders came in better-than-expected. 

Meanwhile, Fed minutes showed members worried about a renewed slowdown with Congress struggling to approve additional fiscal stimulus amid the rising number of coronavirus cases.

After back-to-back Dojis in the previous two sessions, the pair is showing signs of weakness. Price action is testing 5-DMA support at 104.28. Break below will see further weakness.

Major trend is bearish and recovery attempts capped at 21-EMA. Resumption of downside will see dip till lower Bollinger band at 103.27.