FxWirePro: USD/JPY struggles to hold break above 21-EMA, upbeat trade data limits recovery

USD/JPY chart - Trading View 

Fundamental Overview:

Upbeat trade data from Japan released earlier today limits USD/JPY's previous day’s recovery moves.

Data released earlier today showed Japan’s February month Trade Balance grew beyond ¥917.2 B to ¥1109.8 B. 

Further details suggest, Imports and Exports also beat estimates at -14.4% and -4.3% to -14% and -1% respectively.

The US Federal Reserve announced another step, a short-term credit line to primary traders, to ward off the negative implications of the Coronavirus (COVID-19). 

However, downbeat comments from US Treasury Secretary Steve Mnuchin that Coronavirus outbreak could push unemployment up to 20% without action capped upside in US dollar.

Technical Analysis:

USD/JPY has slipped lower from session highs at 107.706 and was trading at 107.185, down 0.44% at 04:35 GMT.

Major trend for the pair is bearish, but minor trend is slightly bullish as evidenced by GMMA indicator.

Price action in the pair has edged above 200H MA and 5-DMA is biased higher.

Upside is capped at 20-DMA which is offering stiff resistance at 107.63. Break above could see further gains.

Next major hurdle lies at 200-DMA (currently at 108.23). Decisive break above could see further gains in the near-term.

Major Support Levels: 106.65 (5-DMA), 105.20 (200H MA)    

Major Resistance Levels: 107.63 (20-DMA), 108.23 (200-DMA)