FxWirePro: USD/JPY trades below 108 handle, bears struggling at cloud support

USD/JPY chart - Trading View 

USD/JPY was extending marginal weakness on the day and was trading below 108 handle.

The pair remains stuck in a narrow range with session high at 108.00 and low at 107.80.

Bearish bias intact, but daily cloud is offering strong support. Focus will be on next week's Fed meeting for impetus.

Data on Thursday showed Initial Jobless Claims stood at just 547,000, well below expectations. 

Initial Jobless Claims were low again for the second straight week, suggesting the US economy is improving.

Further, Chicago Fed National Activity Index rose to 1.71pts from -1.2pts and the Kansas City Fed Manufacturing Activity lifted to 31pts in April from 26pts.

On the other side, Japan preliminary Manufacturing PMI for April arrived at 53.3 (prior 52.7) and Services PMI stood at 48.3 (prior 48.3).

Japan inflation data for March showed National headline Consumer Price Index came in as -0.2% YoY in line with expectations.

Major Support Levels: 

S1: 107.76 (38.2% Fib)

S2: 107.73 (Lower BB)

S3: 106.94 (110-EMA)

Major Resistance Levels: 

R1: 108.02 (5-DMA)

R2: 108.72 (21-EMA)

R3: 108.98 (23.6% Fib)

Summary: USD/JPY trades with a bearish bias. Momentum is bearish and volatility is rising. MACD and ADX also support weakness. Breach at cloud support will plummet prices. Dip till 50% Fib retracement at 106.77 likely.