- US-China trade optimism helped find some support near 38.2% Fibo. level.
- Further gains remained capped below the previous support breakpoint.
The USD/JPY pair showed some resilience below the 107.00 handle and managed to find decent support near 38.2% Fibo. level of the 104.45-108.48 recent recovery move from multi-year lows.
Renewed US-China trade optimism weighed on the Japanese Yen’s safe-haven status and remained support, albeit bulls struggled to extend the momentum beyond 100-SMA on the 4-hourly chart.
This is closely followed by 23.6% Fibo. level support breakpoint, now turned resistance near mid-107.00s, which should act as a key pivotal point for traders amid absent fundamental triggers.
Meanwhile, diverging technical indicators on hourly and daily charts haven’t been supportive of any firm intraday direction and thus, warrant caution before initiating any aggressive trading positions.
Having said that, a convincing breakthrough the mentioned barrier now seems to set the stage for a move beyond the 108.00 handle, possibly towards retesting the recent swing highs near mid-108.00s.
On the flip side, the pair might continue to attract some buying near the 107.00 round-figure mark, which if broken should pave the way for an extension of the ongoing slide from multi-week tops.
USD/JPY 4-hourly chart
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