Home USD/JPY Technical Analysis: Refreshes session tops, bulls await a move beyond 200-DMA
FXStreet News

USD/JPY Technical Analysis: Refreshes session tops, bulls await a move beyond 200-DMA

  • USD/JPY quickly reverses an early dip to two-week lows, below mid-108.00s.
  • Positive trade-related headlines prompted some intraday short-covering move.

The USD/JPY pair showed some resilience below a confluence support near mid-108.00s and rallied around 35 pips from near two-week lows in reaction to positive trade-related headlines.

The mentioned support comprises of 50-day SMA and over one-month-old ascending trend-line, which should now act as a key pivotal point for short-term traders.

It is worth mentioning that a Bloomberg report indicated that the US and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal.

Meanwhile, technical indicators on the 1-hourly chart have quickly moved back into the bullish territory but are yet to catch up with the positive move on 4-hourly chart/daily charts.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the very important 200-day SMA (around the 108.90 region) before positioning for additional gains.

USD/JPY daily chart

fxsoriginal

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.