FxWirePro: USD/JPY comatose at 21-EMA support, break below to see downside resumption

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading largely unchanged at 130.90 at around 08:55 GMT, with session high at 131.37 and low at 130.72.

Previous Week's High/ Low: 131.20/ 128.08

Previous Session's High/ Low: 132.70/ 130.46

Fundamental Overview:

U.S. Federal Reserve Chairman Jerome Powell did not revert to a hawkish stance after strong jobs data. He said policymakers were open to shocks in either direction. 

The not so hawkish Powell's comments sent dovish signals across markets, dragging the dollar index lower. 

"The messaging seems quite balanced, with Powell reiterating the data dependence message," said analysts at ANZ.

In the absence of any major macroeconomic data releases, comments from Fed officials will be closely watched for impetus.

Further, Fitch Ratings announced that it revised 2023 Gross Domestic Product Growth for China to 5% from 4.1%, supporting risk-on sentiment. 

Technical Analysis:

- 'Death Cross' (bearish 50-DMA crossover on 200-DMA) keeps downside bias

- Recovery attempts were rejected at 50-DMA, pair has retraced break above 55-week EMA

- Price action is above 200H MA, 21-EMA is offering immediate support

- Stochs are on verge of bearish rollover from near overbought levels

Major Support and Resistance Levels:

Support - 130.63 (21-EMA), Resistance - 131.41 (55-week EMA)

Summary: USD/JPY pivotal at 21-EMA support. Break below negates any further gains.