- US dollar moves off lows versus Japanese yen despite the decline in Wall Street.
- USD/JPY correction finds support at 108.95, close above 109.30 would point to more gains.
The USD/JPY pair trimmed losses over the last hours amid a recovery of the US dollar and despite the decline in equity prices in Wall Street. Main indexes are falling, retreating from record highs.
The pair bottomed earlier today at 108.88 and after moving sideways for hours broke to the upside. As of writing trades at 109.10, still down for the day, but off lows and with a bullish tone.
Concerns about the situation in Hong Kong weigh on USD/JPY at the beginning of the week. Market volume today is expected to be low due to Veterans Day in the US. The bond market is closed. The US Dollar Index (DXY) is falling modestly on Monday as it trades at 98.20. It represents a modest bearish correction from the three-week high it reached last week at 98.40.
Technical outlook
The pair appears to be recovering the bullish momentum that prevailed last week after a moderate correction. The decline found support around 108.95; a break lower would clear the way to the next support at 108.70; then comes 108.40.
On the upside the immediate resistance lies at 109.20; while a daily close clearly on top of 109.30 would reinforced the upside bias.
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