- USD/JPY has been building on gains from overnight and is heading towards the trend line resistance level.
- USD/JPY bears looking to get involved here for a downside target at the bottom of the channel.
USD/JPY is looking to complete its sixth wave within this widening channel, albeit within familiar consolidative ranges with little bias one way or the other until price breaks and hols below the longer term trendline support between 111.50 and space on the 112 handle.
USD/JPY has traded within familiar ranges overnight while US stock markets offered a session of two halves, starting out positive only to fall back into the bear’s control.
US stocks role over
Wall Street erases early gains, closes in red following trade-war headlines
A Bloomberg news reported that President Trump’s administration was prepared to impose tariffs on all China’s import if there is no progress made between at Nov’s summit. Subsequently, the Dow Jones Industrial Average dropped 245.05 points, or 0.99%, to 24,443.26, the S&P 500 dropped 17.43 points, or 0.66%, to 2,641.26 and the Nasdaq Composite fell 116.92 points, or 1.63%, to 7,050.29. USD/JPY fell back from the highs made at the trendline resistance down to 112.19 late in the day only to hit a strong wave of demand again with bulls hungry for a break out of this consolidative range.
USD/JPY levels
- Support levels: 112.35 111.95 111.60
- Resistance levels: 112.90 113.40 113.85
Valeria Bednarik, Chief Analyst at FXStreet explained that the 4 hours chart for the pair shows that it’s currently struggling around a mild bearish 100 SMA, and a few pips below the 200 SMA, while technical indicators have lost upward strength within positive ground, the Momentum now heading lower around its 100 level, and the RSI flat around 56. The pair needs to advance beyond strong static resistance area around 112.90 to be able to gain further ground.
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