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FxWirePro: USD/JPY extends upside for the third straight session, edges above 21-EMA

Chart - Courtesy Trading View 

USD/JPY was trading 0.41% higher on the day at 128.02 at around 04:40 GMT, slightly below session highs at 128.34.

The pair is extending gains for the third consecutive session as price bounces off 50-DMA support.

China’s official activity numbers marked contraction for May as the headline NBS Manufacturing PMI matched 49.6 forecasts, versus 47.4 prior, while the Non-Manufacturing eased to 47.8, below 50.7 market consensus.

Additionally, Australia’s Building Permits for April shrank to -2.4% compared to 2.0% expected growth and -18.5% in previous readings.

Market optimism fades during early Tuesday as bond buyers take a breather, capping run-away gains in the pair.

Major Support Levels: 

S1: 127.38 (5-DMA)

S2: 126.83 (50-DMA)

Major Resistance Levels: 

R1: 128.59 (20-DMA)

R2: 129

Summary: USD/JPY has held support at 50-DMA and intraday bias has turned bullish. Scope for upside resumption. Watch out for decisive break above 21-EMA for further gains. 
 

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