FxWirePro: USD/JPY extends gains for the 3rd straight session, yen under pressure as virus woes escalate in Japan

USD/JPY chart - Trading View 

USD/JPY was extending gains for the 3rd straight session, edges above 5-DMA after the pair bounced off support at 21-EMA.

The major was trading 0.08% higher on the day at 104.83 at around 02:15 GMT, after closing 0.15% higher in the previous session.

Hopes of US President Joe Biden’s covid relief plan and vaccine optimism keep the U.S. dollar supported. While on the the other side, the yen remains under pressure as Japan battles virus woes.

The Japanese government announced that it will continue the state of emergency for 10 regions amid strain on the Japanese medical system and rise in the elderly infections.

Technical bias for the pair is turning slightly bullish. Long term moving averages on the GMMA indicator show constriction and near term moving averages have edged above the long-term moving averages. 

On the intraday charts, the pair is attempting to break above the hourly cloud. Next immediate resistance lies at 200H MA at 105.02. A decisive break above 200-DMA will confirm any meaningful upside. 

US Michigan Consumer Sentiment Index due today at 15:00 GMT will be watched for further impetus.