FxWirePro: USD/JPY finds stiff resistance at 110-EMA (108.10), break above to see further upside

USD/JPY chart - Trading View 

USD/JPY was trading 0.10% higher on the day at 107.80 at around 04:30 GMT.

The pair is extending break above daily cloud and we see scope for further upside.

Reuters Tankan survey released earlier today showed Japan business morale hits decade low amid coronavirus pandemic.

The survey showed both manufacturers and service-sector firms expect a sharp fall in business sentiment in the three months ahead, at minus 51 and minus 48, respectively.

Price action has confirmed break out of consolidation and is set to extend gains. Momentum studies have turned bullish.

The pair has paused upside at 110-EMA which is offering stiff resistance at 108.10. Break above will see further upside. 

Immediate resistance above 110-EMA lies at 200-DMA at 108.26. Break above 200-DMA to buoy prices higher.

55-EMA is strong support at 107.69. Retrace below 21-EMA negates bullish bias.

FOMC minutes due today be in focus for further impetus. U.S. Markit PMI, Existing Home Sales and Japan Inflation data will also have impact on price movement.

Support levels - 107.69 (55-EMA), 107.26 (21-EMA), 106.70 (Cloud base)

Resistance levels - 108.10 (110-EMA), 108.26 (200-DMA), 108.85 (50% Fib)