FxWirePro: USD/JPY extends break above 21-EMA, awaits Powell speech at Jackson Hole

USD/JPY chart - Trading View 

USD/JPY was trading 0.28% higher on the day at 110.08 at around 10:40 GMT. The major is extending break above 21-EMA, price action pierces into daily cloud. 

Japan's factory activity growth slowed in August, while that of the services sector shrank at the fastest pace since May last year.

Dallas Federal Reserve President Robert Kaplan said on Friday he might reconsider the need for an early start to tapering if the virus harms the economy.

Focus now on Fed Chair Jerome Powell's speech at Jackson Hole this week, which has had to be moved online because of pandemic restrictions.

The spread of the Delta variant has the potential to upset the timing of the U.S. Federal Reserve's tapering plans.

USD/JPY is extending sideways grind, remains capped below daily cloud. Decisive break above cloud to see further gains.

Rejection at daily cloud will see retest of trendline support at 108.90. Breach below 21-week EMA at 109.43 negates any upside bias.