FxWirePro: USD/JPY extends weakness ahead of US PMI data

USD/JPY chart - Trading View 

Technical Analysis: Bias Bearish

- USD/JPY was trading 0.12% lower on the day at 109.53 at around 11:20 GMT

- Momentum indicators are biased lower, RSI is below the 50 mark

- Price action is within the daily cloud, upside remains capped at 5-DMA

- MACD is below zero and ADX is rising in support of downside

- Chikou span is biased lower and breach below cloud will drag the pair lower

- Price action has slipped below 200H MA and GMMA indicator shows bearish shift on the intraday charts

Support levels - 109.29 (Cloud base), 109.09 (110-EMA), 108.85 (200-week MA)

Resistance levels - 109.67 (5-DMA), 109.85 (55-EMA), 110.01 (21-EMA)

Summary: USD/JPY weakens modestly ahead of US PMI data. US Manufacturing PMI for July is expected to arrive at 60.9, slightly above 60.6 in the prior month. 

Focus remains on the Prices Paid component of the survey and a stronger-than-expected reading could provide a boost to the USD.

Technical bias for the pair is bearish. Breach below cloud base support could drag the pair lower. Next major support lies at 110-EMA at 109.09 ahead of 200-week MA at 108.85. 

On the flip side, 5-DMA is immediate resistance at 109.67. Bearish invalidation only above daily cloud.