FxWirePro: USD/JPY recovery lacks traction, 21-EMA offers stiff resistance

USD/JPY chart - Trading View 

USD/JPY trades rangebound with session highs at 105.94 and lows at 105.72.

Recovery in the pair lacks traction, upside capped at stiff resistance at 21-EMA at 106.09.

Fresh weakness in the US dollar amid holiday-thinned trading keeps the range play intact, as the uncertainty over the US fiscal aid looms.

Price action grinds lower in 'Sloping Channel' pattern. Downside intact as long as 21-EMA resistance holds.

With no major economic data scheduled for release, price action remains at the mercy of market sentiment.

A bullish MACD line crossover on signal line raises scope for some upside. Break above 21-EMA could change near-term dynamics.

Major Support Levels: 

S1: 105.70 (5-DMA)

S2: 104.51 (Lower BB)

S3: 103.60 (Trendline)

Major Resistance Levels: 

R1: 106.09 (21-EMA)

R2: 106.74 (55-EMA)

R3: 107.27 (110-EMA)

Summary: Major trend is bearish. Resumption of downside likely. Scope for test of 104.55. Bearish invalidation only above 21-EMA.