FxWirePro: USD/JPY consolidates NFP-led sell-off, finds major support at 110.18 (200-DMA)

• USD/JPY has closed the gap down open and edged higher from session lows at 110.30.
   
• The major now consolidates above 110.50 levels as we head towards early Europe.
   
• Recovery in risk sentiment after upbeat Chinese services PMI has halted flight to safety.
   
• Corrective rally in the US dollar after Friday's NFP-led sell-off, also providing extra legs.
   
• Despite the miss in headline NFP data, analysts said the numbers are still strong with 90% chance of Fed rate hike.
   
• Focus now remains on a fresh batch of US macro news, including the ISM non-manufacturing PMI and factory orders data, for fresh impetus on the pair.
   
• Technically the pair finds strong support at 110.18 (200-DMA). Only decisive break below will see weakness.
   
• Intraday bias is neutral to slightly bearish.

Support levels - 110.18 (200-DMA), 110.10 (cloud base), 110

Resistance levels - 111.80 (5-DMA), 111, 111.19 (50-DMA), 111.94 (20-DMA)

Recommendation: We prefer to wait for clear directional bias.