USD/JPY to extend the bounce on break above 104.70

USD/JPY is modestly bouncing from a daily low at 104.33 maintaining its neutral-to-bullish stance. The pair needs to clear the 104.70 resistance in order to see further gains, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“Japan published the October Corporate Services PMI, which fell by 0.6% YoY, much worse than the 1.2% advance expected. The US has quite a busy macroeconomic calendar this Wednesday. The country will publish October Durable Goods Orders, seen up by 0.9%, and the second estimate of Q3 Gross Domestic Product, seen steady at 3.7% QoQ. The annualized figure is expected to be upwardly revised to 33.2%. The US will also release employment-related figures, among other data.”

“The 4-hour chart shows that the USD/JPY pair is hovering around its 100 SMA, although still above a firmly bullish 20 SMA. Technical indicators remain directionless within positive levels, while a bearish 200 SMA caps advances now around 104.70.”