FxWirePro: USD/JPY struggles at 21-EMA, stays marginally bid as dollar tracks UST yields higher

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% higher on the day at 109.81 at around 05:30 GMT, bias remains neutral.

The pair failed to close above 21-EMA on Monday's trade, and is extending sideways grind.

US dollar remains mildly bid, tracks US Treasury yields amid upbeat market mood. The pair consolidates below daily cloud. 

Markets cheer vaccine optimism and easing of taper tantrum amid covid woes and geopolitical fears.

On the data front, U.S existing home sales stood at a higher-than-expected 5.99 million in July. 

However, August’s manufacturing purchasing managers index (PMI), Markit composite PMI and services PMI were 61.2, 55.4, and 55.2 respectively.

For the upcoming week, focus will be on U.S. Q2 GDP (Thursday) and the core personal consumption expenditures price index, alongside personal income and spending data (Friday).

Meanwhile, investors also look to the Fed’s annual Jackson Hole symposium (Aug. 26 to Aug. 28) for clues regarding asset tapering and interest rate hikes.

Technical bias for the pair is neutral. Stiff resistance seen till 109.85. Decisive break above daily cloud required for upside continuation. 

On the flipside, major support lies at 110-EMA at 109.27. Breach below will negate any further upside.