FxWirePro: USD/JPY attempts tepid bounce in early Asian trade, finds stiff resistance at 200-DMA

USD/JPY chart - Trading View 

USD/JPY is attempting a tepid bounce in early Asian trade, but remains capped at stiff resistance at 200-DMA.

The U.S. dollar was dumped across the board on Friday after Nonfarm Payrolls posted a partly gain of 49K jobs in January, pointing to a slower economic recovery. 

The major was trading 0.15% higher on the day at 105.47 at around 04:20 GMT, after closing 0.17% lower on Friday's trade.

The dollar index DXY was sidelined near 91.05 at the time of writing after slumping over 0.50% on Friday.

Market sentiment remains risk-on as traders cheer increasing odds of $1.9 trillion stimulus from the US.

On the data front today, Japan’s better-than-expected Current Account and Trade Balance data offer support to the Japanese Yen, keeping upside in the pair limited.

Technical indicators for the pair are bullishly aligned, but overbought oscillators may cause some pullbacks.

Breakout at 200-DMA will fuel upside in the pair, allowing test of 38.2% Fib at 106.07. Break below 5-DMA support will see dip till 110-EMA at 104.63.