FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY was trading 0.33% higher on the day at 130.53 at around 05:35 GMT, technical bias remains neutral with a slight bullish bias.

US Dollar trades dicey ahead of the US Gross Domestic Product (GDP) for the fourth quarter (Q4) and the next week’s Federal Open Market Committee (FOMC) meeting.

Price action remains capped at 21-EMA which is offering stiff resistance from many weeks. Any bullish conviction only on decisive break above.

US PMIs overnight were mixed and offered no clear direction. January’s US S&P Global Composite PMI for January increased to 46.6 from 45.0 prior and the 44.7 consensus.

Preliminary reading of the US S&P Global Manufacturing PMI for January rose past 46.2 prior reading and 46.0 market expectations to 46.8 figure.

Further, the Services PMI followed the suit with the 46.6 figure for the said month, versus 44.5 forecast and 44.7 prior.

Focus now on Bank of Japan's (BOJ) Summary of Opinions and US Q4 GDP along with next week’s FOMC meeting for further direction.

Major Support Levels: 

S1: 129.84 (5-DMA)

S2: 129.11 (200H MA)

Major Resistance Levels: 

R1: 130.93 (21-EMA)

R2: 131.47 (55-week EMA)

Summary: USD/JPY pivotal at 21-EMA resistance. Technical bias is neutral with a bullish tilt. Decisive break above 21-EMA could change near-term dynamics.