FxWirePro: USD/JPY resumes upside after brief pause, 61.8% Fib at 107.07 in sight

USD/JPY chart - Trading View 

USD/JPY was trading 0.16% higher on the day at 106.85 at around 03:50 GMT.

The pair has resumed upside after brief pause on Tuesday's trade, outlook is bullish.

regains poise as retreating yields lift the market mood. Further, yen depressed by poor Japanese Services PMI.

The final au Jibun Bank Japan Services Purchasing Managers' Index (PMI) deepened further into contraction, printing at a seasonally adjusted 46.3.

Traders look forward to the US ADP jobs, ISM Services PMI and Fed’s Beige Book for fresh impetus.

Technical indicators remains bullish. The pair has edged above weekly cloud. Momentum is bullish and volatility is rising. 

Major Support Levels: 

S1: 106.58 (5-DMA) 

S2: 105.98 (200H MA)

S3: 105.65 (21-EMA)

Major Resistance Levels: 

R1: 107.07 (61.8% Fib)

R2: 107.54 (July 20 2020 high)

R3: 107.86 (55 month EMA)

Summary: Focus on U.S. ADP jobs data and ISM Services PMI for impetus. Technical studies support upside. Price action is now heading back towards the seven-month highs of 106.95 reached Tuesday. Scope for test of 61.8 Fib at 107.07.