FxWirePro: USD/JPY trades directionless below 21-EMA, likely to extend sideways grind

USD/JPY chart - Trading View 

USD/JPY was extending trade in familiar ranges, technical bias remains neutral.

The pair was trading at 107.66 at around 09:40 GMT, with session high at 107.76 and low at 107.55.

Market sentiment grim as Gilead's coronavirus drug fails in first trial. As expectations of a quick economic recovery continue to dwindle safe-have appeal for yen remains.

Further, Japanese Economy Minister Yasutoshi Nishimura said on Friday that Japan's new economic relief package to fight the coronavirus pandemic is estimated to boost real gross domestic product by about 4.4%.

Technical indicators do not provide a clear directional bias. Volatility is low. Bias is slightly tilted in support of the bears.

A potential 'Death Cross' (bearish 50-DMA crossover on 200-DMA) keeps downside pressure.

Break above 200-DMA will fuel upside in the pair. On the flipside, break below cloud will drag the pair lower.

On the data front, U.S. Durable Goods Orders and U-Mitch Consumer Sentiment Index are awaited for fresh cues.

Support levels - 107.69 (38.2% Fib), 106.44 (50% Fib) 

Resistance levels - 107.95 (21-EMA), 108.30 (200-DMA)