USD/JPY chart - Trading View
USD/JPY has reversed Friday's losses and was trading 0.20% higher on the day at 105.52 at around 04:00 GMT.
The pair opened the week on a bullish note amid renewed market optimism, scope for retest of 50-DMA resistance.
Markets cheer President Trump's coronavirus recovery news and optimism over the US stimulus deal lifts the overall market sentiment.
On the data front, Japan’s Jibun Bank Services PMI rises beyond 45.6 forecast to 46.9 in September.
Technical studies are neutral with a slight bullish bias. Stochs and RSI are biased higher and break above 50-DMA will see upside continuation.
Major trend is bearish. Failure to break stiff resistance at 50-DMA will see dip till 104 levels.
Major Support Levels:
S1: 105.44 (200H MA)
S2: 105
S3: 104 (Sept 21st low)
Major Resistance Levels:
R1: 105.73 (50-DMA)
R2: 105.89 (55-EMA)
R3: 106
Summary: The pair is likely to stay capped at 50-DMA resistance. Mounting bearish pressure will likely drag prices lower. Upside only on decisive break above 50-DMA. Watch out for FOMC minutes due this Wednesday for further impetus.
