- Risk sentiment hanging in the middle for the new week as markets await new news.
- US inflation figures due late this week, but tariffs will dominate the week ahead.
The USD/JPY is trading tightly with the 111.00 handle ahead of Monday’s London market session open as traders brace for a week that promises to be full of trade-related headlines.
Monday sees a limited showing for the US Dollar on the economic calendar, but Greenback traders will be keeping their eyes peeled for any new developments on trade, specifically the US-China trade war after the public commenting period ended last week on another raft of US President Trump’s tariffs on $200 billion worth of Chinese goods, and markets are bracing for the US to pull the trigger on the next round of the deepening Sino-US trade war.
USD/JPY Technical Analysis
Dollar-Yen pairing spinning near the 111.00 handle as traders await a direction for overall market sentiment heading into the new week, and a lower swing high on last week’s chart leaves the pair exposed to further downside as trade tensions remain piqued. Friday’s NFP report saw a bounce in the USD on stronger wages, and later this week will be seeing inflation figures from the US’ CPI reading, but Monday will be a quiet session as traders brace for trade war news.
USD/JPY Chart, 1-Hour
| Spot rate: | 110.97 |
| Relative change: | -0.04% |
| High: | 111.08 |
| Low: | 110.85 |
| Trend: | Sideways |
| Support 1: | 110.85 (current day low) |
| Support 2: | 110.38 (previous week low) |
| Support 3: | 110.00 (major technical level) |
| Resistance 1: | 111.11 (200-hour EMA) |
| Resistance 2: | 111.24 (Friday swing high) |
| Resistance 3: | 111.75 (previous week high) |
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