USD/JPY: Above moving averages, bullish stance reinforced

The USD/JPY pair retains its bullish stance, after bouncing quite fast from an intraday low of 108.69. US ADP survey is expected to show a loss of 9 million positions while Japan services output bounced but remained deep in contraction territory, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Japan published the Jibun Bank Services PMI, which bounced in May to 26.5 from 21.5. China released the Caixin Services PMI for the same month, which jumped to 55 from 44.4, further boosting the optimistic mood.”

“The US session will bring the May ADP survey on private jobs’ creation. The sector is expected to have lost 9 million positions, after losing over 20 million in the previous month. The country will also unveil the ISM Non-Manufacturing PMI, foreseen at 44 from 41.8 in April.”

“The 4-hour chart shows that USD/JPY holds well above all of its moving averages, with the 20 SMA accelerating north above the larger ones while the RSI indicator hovers within overbought levels. The Momentum indicator resumed its advance after correcting extreme readings.”