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FxWirePro: USD/JPY snaps two-day downtrend, retraces dip below 5-DMA, outlook bullish

USD/JPY chart - Trading View 

USD/JPY was trading 0.28% higher on the day at 109.77 at around 10:00 GMT, outlook is bullish.

The major has edged higher after 2 straight days of weakness, retraced brief dip below 5-DMA, is set to resume upside.

US data released overnight showed ISM Manufacturing PMI came in strong. However, details of the report showed inflation and employment components remained weak.

Data suggested further need for the easy money policy and kept the tapering risk at bay, offering support to USD/JPY bulls.

Uncertainty over the Fed’s next move, as well as Biden’s stimulus, test market optimism amid a light calendar day.

Markets remains cautious ahead of key NFP data due Friday. US-China trade headlines could keep upside limited.

Focus on coronavirus headlines, clues on monetary policy and fiscal stimulus for fresh impulse. The pair trades with a bullish outlook, weakness only on break below daily cloud.
 

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