FxWirePro: USD/JPY trades higher for the 2nd straight session, break above 21-EMA required for further upside

USD/JPY chart - Trading View 

USD/JPY was trading 0.20% higher on the day at 103.21 at around 06:50 GMT.

The pair is extending gains for the 2nd straight session and holds above 5-DMA.

Risks for the pair remain skewed to the downside despite minor bounce from multi-month lows.

Recovery lacks traction and upside finds stiff resistance at 21-EMA at 103.47. Decisive break above to see further gains.

Ongoing risk-off after overnight chaos in the US capitol coupled with US-China tensions could keep the safe-haven dollar bid.

Technical bias is strongly bearish. The pair has held support at 102.60 (falling trendline). Break below will see downside resumption.

Supports below align at 103.06 (5-DMA), 102.60 (falling trendline), 102, 101.70 (trendline), 101.18 (March 2020 low). 

On the flipside, resistances are seen at 103.26 (200H MA), 103.47 (21-EMA), 104.05 (55-EMA) and 104.79 (110-EMA).

On the data front, focus will be on U.S. ISM Services PMI later today ahead of Non-farm Payrolls due Friday for impetus.