FxWirePro: US dollar extends weakness ahead of ISM Services PMI, USD/JPY slips below 200H MA

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% lower on the day at 110.84 at around 04:15 GMT, slips below 5-DMA.

The major closed Monday's trade with a Doji formation below 5-DMA and price action has slipped below 200H MA.

The US dollar index (DXY) tests fresh weekly low at 92.12, as the market’s indecision over the Federal Reserve’s (Fed) next move triggers profit booking.

Investors focus on the US ISM Service Purchase Manager Index (PMI) and FOMC Minutes of Meeting on Wednesday for fresh trading impetus. 

Today’s US ISM Services PMI for June is expected to print at 63.5 versus 64.0 prior. Any upside surprise, backed by inflation component surge, could renew Fed’s action call.

FOMC Minutes could throw some light on the policymakers approach on future guidance on interest rates and growth outlook. 

Major technical bias for the pair remains bullish as price action consolidates break above major trendline resistance. 

Pullbacks, if any, on account of overbought conditions are likely to find strong support at 110.50 (converged 20-DMA and 21-EMA).