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The USD/JPY pair trades with a heavy tone and its bullish potential remains limited, Valeria Bednarik, Chief Analyst at FXStreet, informs. 

Key quotes

“The US will publish today the April ISM Non-Manufacturing PMI, foreseen at 32 from 52.5 previously. Markit will release the final version of the Services PMI for the same month, foreseen unchanged from the preliminary estimate at 27.”

“The 4-hour chart shows that USD/JPY is hovering around a flat 20 SMA, while the larger ones maintain their bearish slopes above the current level.” 

“The risk is skewed to the downside, although the pair would need to break below 106.35, the immediate support level, to be able to extend its slide.”