FxWirePro: USD/JPY extends Friday’s range play, US dollar subdued amid thin trading, ahead of ISM Services PMI

USD/JPY chart - Trading View 

USD/JPY was trading rangebound on Easter Monday with session high at 110.74 and low at 110.52.

The major was extending Friday’s range play, US dollar remains subdued amid thin trading as markets await ISM Services PMI data.

The pair erased initial losses and closed largely unchanged on Friday after US registered an impressive job growth in March.

Data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls in March rose by 916,000, beating market expectation of 647,000 by a wide margin. 

Upbeat data failed to provide any significant boost to the pair as trading remained muted amid holiday shortened week.

U.S. Services PMI due later today is expected to rise to 58.5 from 55.3, reflecting the economic recovery.

The Employment Index is projected to rise to 53.9 from 52.7 and the Prices Paid Index to drop to 68.3 from 71.8.

The pair is extending sideways grind for the 3rd straight session, but technical bias remains bullish. 

Price is holding above 5-DMA support, break below will see further weakness. Next major support lies at 200H MA at 109.89.

Coronavirus (COVID-19) resurgence across major Asia-Pacific markets is flashing mixed signals. Risk catalysts remain the key, but US ISM Services PMI could offer near-term direction.